Ethereum Surges 10% Dominance as Price Breaks 50-Day EMA

Ethereum's price has recently surged past its 50-day Exponential Moving Average (EMA) after a period of rejection, indicating a potential shift in market sentiment. This movement coincides with a resurgence in Ethereum's dominance within the cryptocurrency market. The 50-day EMA is a widely watched technical indicator that helps traders identify the direction of a trend. When a cryptocurrency's price breaks through this level, it often signals a bullish trend, suggesting that the asset may continue to rise.

The rejection phase, where the price initially failed to break through the 50-day EMA, was a critical moment for Ethereum. This phase often tests the resolve of buyers and can lead to a period of consolidation before a breakout. The subsequent breakout above the 50-day EMA indicates that buyers have regained control, pushing the price higher and potentially setting the stage for further gains.

Crypto analyst Doctor Profit noted that after nine weeks of constant rejection at the EMA50 on the weekly chart, the Ethereum price has finally broken through. This break above the 2,600 EMA50 level came as the broader crypto market rallied, led by the Bitcoin price reaching new all-time highs. Based on this, the Ethereum price is expected to also reach new highs, with the yearly high of $3,600 already in sight. A reclaim of this level could also pave the way for ETH to reclaim the psychological $4,000 level.

Ethereum's dominance, which refers to its market share relative to the total cryptocurrency market, has also seen a resurgence. This increase in dominance suggests that investors are increasingly favoring Ethereum over other cryptocurrencies. The rise in Ethereum's dominance can be attributed to several factors, including its strong ecosystem of decentralized applications (dApps) and its role as a platform for smart contracts. These factors have made Ethereum a popular choice for developers and investors alike, contributing to its growing market share.

Crypto analyst Rekt Capital alluded to the rising dominance of the Ethereum price, noting that this ETH dominance fractal will not be a copy-paste version of what happened between 2019 and 2020. However, the analyst claimed that the recent rise to 10% of the dominance level shows that Ethereum wants to become more market-dominant in the coming months. BitMEX co-founder Arthur Hayes also believes that it is time for the Ethereum price to make its move, predicting that the altcoin could reach as high as $10,000 on this upward trend.

Crypto analyst Mikybull Crypto stated that the Ethereum price is following the Wyckoff re-accumulation schematic. He further remarked that this massive move will trigger altcoin season after ETH reaches the “SOS” level around $3,000. His accompanying chart also showed that he expects Ethereum to reach as high as $3,200 in the short term. In another post, Mikybull Crypto alluded to the fact that Bitcoin’s dominance was dumping even as the BTC price rises. The analyst remarked that this development means something, hinting at a potential altcoin season on the horizon. This is bullish for the Ethereum price and other altcoins as they would outperform BTC during this period.

The resurgence in Ethereum's dominance and its breakout above the 50-day EMA are positive signs for the cryptocurrency market. These developments suggest that Ethereum is poised for further growth, potentially leading to a new bull run. However, it is important to note that the cryptocurrency market is highly volatile, and prices can fluctuate rapidly. Investors should exercise caution and conduct thorough research before making any investment decisions.