In this Ethereum price prediciton we look at how Bitcoin's dominance has been rising as a potential negative catalyst for ETH's performance.
Ethereum (ETH) has gone down by 14.5% in the past week as rising tensions in the Middle East have sparked a strong sell-off that has now pushed the token to the low 2,000s.
The United States bombed nuclear enrichment facilities in Iran during the weekend and a new chapter in this armed conflict between Israel and Iran began as a result.
The market was spooked by the news and a downward move that started on Wednesday accelerated during the weekend, pushing ETH from nearly $2,900 to its current level of $2,260.
Bitcoin (BTC) has been increasing its dominance in the crypto market as investors have rotated their capital out of altcoins amid the uncertainty and volatility triggered by these events.
Data from CoinMarketCap shows that BTC’s dominance has been steadily increasing in the past year, moving from 54.1% in June 2024 to 64% as of today. As a result, ETH’s dominance has stepped back from 18.2% to 8%.
It appears that investors continue to see Bitcoin as the safer bet of all in the crypto market, which favors a bearish Ethereum price prediction.
Ethereum Price Prediction: ETH Could Drop to $1,800 if It Fails to Recapture These Levels
Looking at the 4-hour chart, we can see that ETH has broken below two key supports already, the first at $2,380 and the second at $2,320.
The token has now stepped out of consolidation as a result of this bearish breakout and could be heading to retest the $1,800 shortly as the uptrend has now been reversed.
Momentum indicators have improved slightly as the Relative Strength Index (RSI) has stepped out of oversold territory for the time being and has moved above the 14-period moving average.
It is still too early to say that this is the end of the downtrend. What this improvement could mean in the near term is that ETH will retest these support levels from below and could then resume its downward momentum after it raises enough buy-side liquidity.
As Bitcoin’s dominance continues to increase, all crypto presales associated with the top crypto stand to reap the benefits of its positive performance.
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