Ethereum Price Holds at $2,500 as Bitcoin Dominance Declines

Ethereum (ETH) price action is currently under scrutiny as it approaches a significant resistance-turned-support level of around $2,500. Market analysts are closely monitoring whether ETH can hold onto this level to initiate a broader market momentum.

Ethereum's price is attempting to reverse the $2,500 resistance area into a new support level. This zone has been a significant resistance point for much of the last quarter, thwarting numerous bullish advances. The latest price trends show Ethereum dipping just above this mark following a recent breakout effort. According to chart analysis by Ted Pillows, the next structured resistance is between $2,800 and $2,880. This area has previously stopped gains and marked a final top before a wider reversal. A confirmed bounce at the $2,500 level could restore bullish momentum and test the upper range.

Meanwhile, the number of Ethereum daily on-chain transactions has continued to increase, approaching the historical all-time high value achieved in 2021. Current network usage is nearing 1.5 million transactions per day, according to blockchain data shared by Merjin Trader. This growth has occurred without a corresponding surge in gas fees, indicating long-term user demand within the DeFi, NFT, and layer-2 ecosystems. The increase in activity is due to consistent decentralized application usage and the growing number of developers and protocols utilizing the Ethereum network, reflecting underlying resilience in Ethereum adoption rather than short-term trader investment.

Analyst CryptoELITES noted that Bitcoin dominance has now been inverted following a local peak at approximately 58%, an area that previously experienced cycle tops in 2019. After such tops, there is usually a tendency in the crypto market to move to altcoins, bringing more capital to Ethereum and other non-Bitcoin cryptocurrencies. The pullback in dominance mirrored patterns that preceded previous altcoin rallies. Ethereum, as the leading altcoin by market capitalization and network usage, often leads such rotations. If the decline in dominance persists, Ethereum’s relative strength may increase as investor focus shifts away from Bitcoin-led momentum.

The Ethereum network is seeing a surge in activity, with strong support around the $2,500 level while Bitcoin dominance is declining. This combination of factors has often preceded gains in altcoins in the past. If Ethereum price holds above the $2,500 mark and regains bullish structure above the $2,800 mark, it could lead to an altcoin rally. In these times, Ethereum price tends to grow, and its dominance in the altcoin market grows as well. Further supporting a bullish breakout, a recent analysis pointed to Ethereum rising in institutional accumulation. This included an $80 Million withdrawal on Matrixport and a $517 Million acquisition by SharpLink Gaming. On-chain data from cryptoQuant also indicated that there was a June record-breaking accumulation and staking.