Ethereum Advantage Below 14% Short-term net inflows suggest selling pressure, while long-term outflows suggest potential accumulation
Ethereum (ETH)’s dominance in the cryptocurrency market has fallen to 13.36% from 18.85% a year ago. As noted by analyst Benjamin Cowen, this means a significant decline in ETH’s share of the overall crypto market. In fact, the aforementioned decline can be seen as a sign of sustained selling pressure. ETH in particular has struggled to maintain higher dominance levels.
Historically, Ethereum has faced resistance at the 16% and 22% dominance levels and has failed to break through these barriers multiple times since 2018. A continued decline is part of a descending triangle pattern and is generally a sign of a bearish trend.
Source: TradingView
In the attached chart, the upper trendline highlights lower highs, while the lower trendline acts as a long-term support level.
Free fall to 9-10% ETH dominance?
If the downside momentum continues, the next major support level could be between the 9% and 10% prevailing levels, Cowen said. This would mean an even deeper decline due to a decline in purchasing appetite.
Historical support around 9% could be a key point for ETH, especially if broader market trends do not favor the altcoin sector in the coming months.
If this support level holds, ETH’s dominance could stabilize and set the stage for a possible recovery in 2025. However, if ETH falls below the 9% mark, it could signal a longer period of underperformance compared to other altcoins and cryptocurrencies overall. market.
Ethereum recent price trends and market activity
Ethereum is trading at $2,542.29 at the time of writing, up 0.59% in the past 24 hours and down -3.11% over the past week. The 24-hour trading volume was approximately $17.6 billion, a sign of active trading. The circulating supply is 120 million ETH, and the market capitalization is estimated to be approximately $306.29 billion.
According to data from DefiLlama, the total value locked (TVL) on the Ethereum network was $47.91 billion at the time of writing, with daily fees reaching $3.55 million and revenue reaching $2.55 million. . In the last 24 hours, the network received approximately $38.78 million in inflows and 372,911 active addresses.
Taken together, these indicators highlight the continued use of Ethereum despite its declining dominance.
Netflow data highlights near-term selling pressure
Finally, IntoTheBlock’s data shows an increase in inflows to the exchange, with an increase of +52.90% over the past 7 days and an increase of +28.94% over the past 30 days. This trend is often seen when traders move assets onto the platform in preparation for selling or taking profits.
However, over 90 days, there was a massive change in net outflows of -64,155.88%, indicating a long-term trend of investors withdrawing ETH from exchanges.
Source: Into the Block
The increase in short-term capital inflows is consistent with broader bearish sentiment in the market. In particular, when more Ethereum is moved to an exchange, it usually indicates an intent to sell.
On the contrary, net outflows over time indicate potential for accumulation as users move ETH from exchanges for storage or staking.
Taken together, analysts believe that ETH could fall further in the short term, but could recover in 2025.
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