Ethereum (ETH) returned to the $4,000 level on Friday — the first time in 8 months — as Bitcoin lost some market capitalization share in the crypto market.
ETH in the “reaccumulation zone” as bulls push the price up to $4,000
Data from TradingView shows that ETH reached $4,012.
Rising about 3% on the day, this altcoin has set a new milestone for 2025 as it surpasses a key psychological threshold and is now less than $900 away from hitting a new all-time high.
In response to this development, renowned trader and analyst Rekt Capital is among those noticing ETH's increasing dominance in the total crypto market capitalization.
“The dominance rate of ETH has now reached about 50-60% of the way in the macro uptrend,” he estimated in a post on X.
The attached chart compares the current price action with the previous price surge of ETH in 2021.
Others also noted the trend of investors continuing to favor ETH over BTC, with renowned trader Cas Abbe summarizing recent large-scale buy-ins.
Meanwhile, the analysis platform Lookonchain has been tracking whale transactions, seemingly aiming to leverage the relative strength of ETH.
Order book data from exchanges shows a “huge Long liquidation wall” below the $3,960 level, leading X account TheKingfisher to expect the price of ETH to continue rising.
“This is what smart money is hunting for. Most traders see this as a dump, while we see this as a reaccumulation zone waiting to be fueled,” part of a comment attached on X reads.
Bitcoin's dominance index faces an “inevitable” decline
Recent fluctuations are fueling the competition for position among altcoins, causing Bitcoin's market capitalization dominance to drop rapidly.
Bitcoin's market share has dropped below 59.9% on the day, once again testing an important support level.
In another analysis on X, Rekt Capital noted that while the dominance index could still recover to the traditional peak of around 70%, a collapse thereafter is “inevitable.”
“When that long-term technical uptrend is broken, BTC's dominance will shift into a long-term technical downtrend. The long-term downward target will be to plunge down to around 40%, possibly even to the 30% area,” he forecasted.
