Ethereum has surpassed the 4,200 USD threshold, boosting expectations of conquering new heights in the short term.
Ethereum's uptrend occurs in the context of a widespread bullish trend across the altcoin market, as the decrease in Bitcoin's dominance creates conditions for altcoins to rise.
MAIN CONTENT
The decrease in Bitcoin Dominance opens up breakthrough opportunities for altcoins, especially Ethereum.
Ethereum has turned the resistance zone of 3,900 – 4,100 USD into strong support, laying the groundwork to challenge the 4,900 USD peak.
Short-term corrections may occur, but the long-term uptrend is still reinforced by positive macro factors.
Does the decrease in Bitcoin Dominance pave the way for altcoin development?
Bitcoin Dominance is currently maintaining around the important support level of 60.5% – 61%, if this zone is broken, altcoins are expected to have a stronger advantage.
Market analysts believe that a decisive close below this level, especially on the 3-day chart, will establish an 'altcoin season', allowing Ethereum to benefit the most due to its liquidity and market capitalization position.
The decline in Bitcoin Dominance will encourage investors to shift funds to altcoins, thus creating strong momentum for Ethereum, which has always been the focal point in altcoin seasons.
Cryptocurrency analyst's opinion, 2024
The decrease in Bitcoin Dominance is not only a technical signal but also reflects the flow of funds moving in a more diverse market context. This creates momentum for Ethereum and many other tokens to strengthen their position in the market.
Has Ethereum surely created a new support zone after the surge?
Ethereum has turned the resistance zone of 3,900 – 4,100 USD into support, marking an important technical step towards challenging the price milestone of 4,900 USD, the previous historical peak.
Stability at this support zone will help Ethereum maintain upward momentum in the short term, potentially boosting its increase in the coming days rather than extending over several weeks.
This is evidence of Ethereum's strength based on a favorable technical foundation, enhancing reliability in assessing the next trend.
Is there a possibility for Ethereum to have a short-term correction before continuing to rise?
The daily RSI index is warning of a bearish divergence signal, often indicating the potential for reversal or short-term correction.
A slight correction may occur for Ethereum to retest lower support levels before the next increase, helping investors reinforce their safe positions.
This correction is a normal part of the price increase cycle, helping the market absorb money flows, increasing the sustainability of the upward trend.
What macro factors support Ethereum's uptrend?
Ethereum benefits from many positive macro factors such as the growing interest of institutional investors, the adoption of Layer-2 scaling solutions, and a central role in DeFi and NFTs.
The further decrease in Bitcoin's dominance reinforces the foundation for Ethereum to continue to develop strongly in the vast cryptocurrency market.
Ethereum is not only a technology platform but also a symbol of innovation in DeFi, with outstanding growth potential as the market rapidly expands.
Expert opinion on cryptocurrency research, 2024
These conditions create a solid foundation for Ethereum on its journey to conquer higher price milestones and enhance its position in the global blockchain ecosystem.
Frequently Asked Questions
What is Bitcoin Dominance and why is it important?
Bitcoin Dominance measures the proportion of Bitcoin's market capitalization in the total cryptocurrency market capitalization, helping to determine the flow of funds and the investment trend shifting between Bitcoin and altcoins.
How long can Ethereum reach new highs?
Ethereum could reach new highs in a few days if strong buying continues and the current support zone is maintained.
What impact does bearish RSI divergence have on Ethereum's price?
Bearish RSI divergence warns of the potential for a short-term correction to retest support, not necessarily signaling a long-term trend change.
What positive factors are currently supporting Ethereum?
ETN is supported by institutional capital flows, Layer-2 solutions, and a central role in DeFi and NFTs, while also benefiting from the decline in Bitcoin Dominance.
What is altcoin season and how does Ethereum benefit from it?
Altcoin season is a period of exceptional growth for altcoins, where Ethereum often leads with the largest liquidity and market capitalization after Bitcoin.
Source: https://tintucbitcoin.com/ethereum-co-the-vuot-moc-5-000-usd/
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