The cryptocurrency market may be about to turn a corner. Ethereum’s (ETH) dominance is showing signs of stabilizing after a months-long decline, and this could signal a potential reversal.
Historically, the fourth quarter has been a strong period for Ethereum, often marking a bottom against Bitcoin (BTC). According to crypto analyst Mikybull Crypto, ETH is now showing strength over BTC, which could set the stage for a potential altcoin surge in Q1.
$ETH is looking stronger than $BTC
As I said Q4 historically marked a bottom for ETH/BTC
Expect #ALTSEASON in Q1 pic.twitter.com/cG0CibX1dd
— Mikybull 🐂Crypto (@MikybullCrypto) December 30, 2024
Ethereum’s Stabilizing Dominance
Over the past few months, Ethereum’s market dominance has steadily declined, falling from approximately 18% mid-year to a recent low of 12%. This drop reflected investors moving their capital to other cryptocurrencies or assets.
But the trend appears to be changing. Ethereum’s dominance has now stabilized at 12.82%, showing early signs of recovery.
Key Technical Levels to Watch
Ethereum’s dominance chart presents critical levels that could influence its near-term trajectory. The 12% mark has proven to be a reliable support zone. Each time the dominance neared this level, it rebounded, suggesting investor confidence in this range.
Meanwhile, resistance sits between 13% and 13.5%, where previous attempts to rally failed.
Marketcap ETH Dominance, % Source: Trading view
A break above this resistance level, coupled with increased trading volume, could confirm a bullish reversal. Consistent daily closes above 13% would likely lead to further gains.
Market Sentiment and Broader Trends
The recent stabilization in Ethereum dominance suggests a change in market sentiment. Traders may be reconsidering Ethereum’s value amid shifting market conditions. Layer 2 scaling solutions, competitive developments, and macroeconomic factors are likely contributing to this renewed interest.
Read also: Will Ethereum’s Strong Q1 Performance in 2025 Propel Altcoins to New Heights?
78.30% of traders on @BitMEX with open #Ethereum $ETH futures trades are betting on the price going up! pic.twitter.com/qfUKFinTYv
— Ali (@ali_charts) December 30, 2024
Additionally, current trading data supports the optimism. As noted by crypto analyst Ali Martinez, around 78.30% of traders with open Ethereum futures on major exchanges are bullish on Ethereum’s price.
The current price of Ethereum stands at $3,415.90, with a 24-hour trading volume of over $16 billion. Ethereum has gained 0.88% in the past 24 hours, reflecting positive market sentiment.
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