The idea of an Ethereum-led rally is supported by the historical trend of Bitcoin dominance declining during corrections. Altcoins typically see a spike in market share and price action when Bitcoin’s dominance declines. This pattern is best illustrated by the cryptocurrency market of 2017, when Ethereum and other altcoins surged while Bitcoin cooled. Based on rising trading volumes and bullish technical indicators, Ethereum seems to be strengthening in the present situation.
There is still opportunity for more upward momentum because the RSI is in a neutral zone. Ethereum has been in a strong upward trend and has overcome important resistance levels, such as $3,000 and $3,200. Due to its relative stability, Ethereum is the preferred option for investors in light of the uncertainty created by Bitcoin’s decline. An important psychological and technical level of $4,000 could be tested if the price rises above $3,500.
Ethereum is receiving strong support from the 50-day EMA, and rising volume indicates that investor interest is growing. Ethereum may take the lead in the upcoming stage of the market’s bullish cycle if Bitcoin’s dominance keeps waning. In the past, altcoin rallies have been sparked by Bitcoin’s decline. In the present situation, Ethereum gains from capital rotation reflecting a similar dynamic.
The potential and ecosystem of Ethereum may appeal to investors looking for diversification during Bitcoin’s consolidation which would raise its price even more. While Bitcoin is going through a difficult time, Ethereum’s solid foundation and past patterns indicate that a rally to $4,000 is possible. Whether Ethereum can profit from Bitcoin’s decline and steer the altcoin market into a fresh bullish phase will be determined in the days ahead.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
