Ethereum News Today: Ethereum Reclaims $3,000 Level, Dominance Rises 1.5%

Ethereum has seen a resurgence in investor confidence following its recent price performance, which saw the altcoin reclaim the $3,000 level. Although the ETH token is still some distance from its all-time-high price, it has begun to regain its standing in the crypto market.

While the Ethereum price has slowed over the weekend, the second-largest cryptocurrency has managed to maintain a level around $3,600. However, recent on-chain data has raised questions about the ETH token's ability to sustain its bullish rally in the coming days.

Ethereum's reserves on Binance, the world's largest cryptocurrency exchange by trading volume, have reached a new high. This observation is based on the Exchange Reserve metric, which measures the total amount of Ether tokens held in wallets on the exchange at a given time. It also provides insight into the net flow into these Binance wallets.

When inflows exceed outflows, the Binance Ethereum reserve increases, indicating more ETH tokens on the exchange. Conversely, when outflows exceed inflows, the exchange reserve decreases. The last time Binance Ethereum reserves hit a new high was in November 2022, indicating increased exchange activity over the past weeks.

While this increased activity could suggest potential selling pressure, the context suggests otherwise. With Ethereum experiencing a bullish rally, the growth in market participation could be a result of renewed bullish sentiment.

Ethereum’s dominance in the crypto market is also on the rise, regaining ground lost during periods of poor performance. The relevant on-chain indicator is the Market Cap ETH Dominance, which measures the percentage of Ethereum’s market capitalization compared to other cryptocurrencies. This indicates Ethereum’s share in the overall crypto market and is usually represented in a Renko chart.

The Renko chart reflects a “strong bounce” from the critical 8% support zone, heading towards 11.2%. A notable divergence seen on the Moving Average Convergence Divergence (MACD) suggests growing Ethereum leadership as Bitcoin’s momentum cools. However, this growing dominance is expected to face resistance around the 14% level.

If Ethereum’s dominance holds and its price stays above $3,500, there could be further upside movement. However, caution is advised as Ethereum approaches the resistance level, which might cause possible short-term corrections. As of the latest update, Ethereum is valued at about $3,655, reflecting a 1.5% increase in the past 24 hours.