The recent market recovery has seen digital assets like Bitcoin and Ethereum put in significant amounts of value over the past couple of days. However, there have been some market leaders in this regard, and Ethereum is one of them. The digital asset rallied due to the announcement of a merger taking place in September, but this is not the only aspect where the second largest cryptocurrency in the crypto market recorded a recovery.
Ethereum steals market dominance
Ethereum’s rise above $1,500 saw its market cap grow above $190 billion once again. Digital assets have posted some of the biggest gains over the past two weeks, with a 40% recovery. This has resulted in the growth of asset dominance across the industry.
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Although Ethereum remains the cryptocurrency with the second largest market dominance, it has added more over the past couple of days. This has infiltrated the bitcoin market cap as the leading cryptocurrency struggles to keep pace with market gains.
Over the past two days, Bitcoin has seen its market dominance decline by more than 2%. This market share was quickly absorbed by Ethereum, which saw its dominance rise in this time period. It added more than 2% to go from faltering around 16% to its current dominance of 18.9%.
ETH dominance adds 2% | Source: Market Cap ETH Dominance on TradingView.com
It is expected to capture a larger market share than Bitcoin as its price continues to grow. However, it is still way off its all-time high, which saw its dominance rise to 32% again in the 2017 bull market.
ETH sets $1,700
Ethereum has now broken above an important technical point. After trending below the 50-day moving average for the better part of last month, ETH flipped this technical level and is now sitting comfortably above it. The implication of this was a complete 180 degree shift from bearish to bullish, especially over the short term.
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After challenging the bears and recovering above $1500 this week, it is now heading towards the next important technical level. Even as the recovery trend continues, the bears are beginning to build up resistance at the $1,700 level. A break above this point is important for Ethereum in the short term.
If Ethereum can successfully overcome the resistance at $1,700, the next important level will be $1,936. This point ensures that there is no significant resistance until $2500. However, a failure to beat the bears at $1,700 could send the digital asset down to $1,300.
Featured image from The Guardian Nigeria News, chart from TradingView.com
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