Ethereum’s Stabilizing Dominance

The cryptocurrency market may be about to turn a corner. Ethereum’s (ETH) dominance is showing signs of stabilizing after a months-long decline, potentially signaling a reversal.

Historically, the fourth quarter has been strong for Ethereum, often marking a bottom against Bitcoin (BTC). According to crypto analyst Mikybull Crypto, ETH is showing strength over BTC, possibly preparing for an 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
> — Mikybull 🐂Crypto (@MikybullCrypto) December 30, 2024

Ethereum’s Stabilizing Dominance

Over the past few months, Ethereum’s market dominance has declined from approximately 18% mid-year to a recent low of 12%. This drop reflected a shift of investor capital to other cryptocurrencies or assets.

However, 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

The dominance chart presents critical levels that could influence Ethereum’s trajectory. The 12% mark has proven reliable as a support zone, with rebounds each time dominance neared this level, indicating investor confidence.

Resistance lies between 13% and 13.5%, where previous rally attempts have failed. A break above resistance with increased trading volume could confirm a bullish reversal, leading to further gains.

Market Sentiment and Broader Trends

The recent stabilization suggests a change in market sentiment. Traders may be reconsidering Ethereum’s value amid shifting conditions. Layer 2 solutions, competitive developments, and macroeconomic factors may contribute 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 optimism, with about 78.30% of futures traders bullish on Ethereum’s price.

The current price of Ethereum is $3,415.90, with a 24-hour trading volume exceeding $16 billion. Ethereum has gained 0.88% in the last 24 hours, reflecting positive sentiment.

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