Ethereum (ETH) Likely To Profit Off Bitcoin (BTC)’s Misery


Ethereum Chart With Values

Bitcoin (BTC) dominance is in a steady downtrend. The last few moves of capitulation seen in the market were aimed at lowering altcoin prices while Bitcoin (BTC) remains steady. As the Bitcoin (BTC) dominance chart shows, this is not going to happen anymore. In fact, the reverse is going to happen now. As Bitcoin (BTC) dominance falls, altcoins will move against Bitcoin (BTC) in order to complete their cycles. A lot of cryptocurrencies have now neared their lowest levels of dominance. Ethereum (ETH) is one of those cryptocurrencies. During the last altcoin run, Ethereum (ETH) became a market maker and breaker in June 2017. That was when its dominance was at an all time high and Bitcoin (BTC)’s dominance was at an all time low.

Ethereum (ETH) was calling the shots and the market was dancing to its tunes. However, as time went by, Ethereum (ETH) dominance continued to decline as Bitcoin (BTC) regained its dominance. The big moment for Bitcoin (BTC) came around July 2018 when Bitcoin (BTC) broke the dominance downtrend. However, soon afterwards, it got stopped by an even stronger resistance and thus the short lived belief that Bitcoin (BTC) had actually broken a dominance downtrend was nullified. Bitcoin (BTC) is about to run into the downtrend resistance again. If it is rejected this time, the fall in dominance will be a very swift one and other cryptocurrencies will soon fill the vacuum.

Ethereum Chart With Values

Out of all cryptocurrencies that have remained beneficiaries of a falling Bitcoin (BTC) dominance, Ethereum (ETH) is at the top of the list. The dominance level for Ethereum (ETH) has just fallen back to a long term trend line. This is the dominance trend line that Ethereum (ETH) has held since its existence and there is no reason to believe it will break it this time. If Ethereum (ETH)’s dominance were to rise this time, it would deal a devastating blow to Bitcoin (BTC)’s hold on the cryptocurrency market. Previously when Bitcoin (BTC) dominance fell, it fell from near 80% dominance levels. Yet Ethereum (ETH) was able to amass such influence that it was literally calling the shots back then.

Ethereum Chart With Values

If Bitcoin (BTC) dominance falls in the same manner this time, Ethereum (ETH) will be the single most powerful beneficiary. However, unlike before, this time, the dominance of Ethereum (ETH) will be lower than the rest of the altcoins combined. While it may still have a lot of influence, it will most likely not be calling the shots as before. In fact, most cryptocurrencies will trade based on their own merits and demerits which is something most of us would like to see. That being said, the above weekly chart for ETH/USD shows that Ethereum (ETH) is just getting started. It is very likely to reach a price of $4,000 or higher during its next cycle. That kind of market cap will make Ethereum (ETH) the single most powerful entity in the cryptocurrency market after Bitcoin (BTC). Considering that Ethereum (ETH) has previously influenced the behavior of most altcoins, it is likely that it will continue to have significant impact, if not total control.

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