While the Bitcoin price has been consolidating largely post the ETF approval, Ethereum has been making strong moves upside, thereby closing the gap with BTC. At press time, the Ethereum price is trading 1.44% up at a price of $2,564 with a market cap of $308 billion.
The Ethereum Price Dominance
According to insights provided by on-chain data provider Santiment, Ethereum’s price dominance has experienced a notable surge against Bitcoin, marking a +22.4% increase over the past week. This period has witnessed the creation of 89.4K new Ethereum addresses per day, further underscoring the platform’s growing traction. Notably, a staggering 96.3K wallets were created just yesterday.
In addition to these on-chain activities, Santiment’s data reveals a significant trend in Ethereum’s supply on exchanges, nearing its All-Time Low of 8.05%. This movement toward self-custody and staking implies a reduced risk of an imminent selloff, presenting a more favorable scenario compared to concerns arising from a rising supply on exchanges. These on-chain dynamics shed light on Ethereum’s current market strength and its potential implications for future price movements.
ETH Price Action Going Ahead
In the recent trading session on Tuesday, Ethereum price initially experienced a slight pullback, testing the crucial $2,500 level. Notably, this level had previously served as significant resistance but now appears to be providing substantial support for the cryptocurrency. The price action suggests Ethereum’s attempt to enter a consolidation phase.
The $2,700 level emerges as a key threshold, representing the upper boundary of the short-term trading range. Analysts consider this level crucial, and a breakthrough could set the stage for a potential market surge, with Fear of Missing Out (FOMO) traders likely to join the rally. Beyond $2,700, the Ethereum price could further rally all the way to $3,400.
Conversely, a downside scenario could unfold if Ethereum breaks below the hammer formed during the Monday session. In such a case, the cryptocurrency might see a downward movement toward the 20-Day Exponential Moving Average (EMA), situated around the $2,300 level. Traders are closely monitoring these critical levels, anticipating potential shifts in Ethereum’s short-term trajectory.
