Since Ethereum has been able to withstand Bitcoin’s decline, there has been speculation that a shift towards altcoins, especially ETH, is imminent. As Bitcoin struggles to maintain momentum near $100,000, Ethereum’s price action has been closely watched as it is currently trading above $3,400.
The idea of an Ethereum-led rally is supported by Bitcoin’s historical trend of declining dominance during corrections. When Bitcoin’s dominance declines, altcoins’ market share and price action typically surge. This pattern was best seen in the cryptocurrency market in 2017, when Ethereum and other altcoins surged while Bitcoin cooled. Based on rising trading volumes and bullish technical indicators, Ethereum appears to be gaining strength in the current scenario.
Since the RSI is in the neutral zone, there are still chances for further gains. Ethereum has been in a strong uptrend and has broken through important resistance levels such as $3,000 and $3,200. Since Ethereum is relatively stable, it is a top choice for investors given the uncertainty caused by the decline of Bitcoin. If the price rises above $3,500, it may test the important psychological and technical level of $4,000.
Ethereum is finding strong support from its 50-day moving average, and rising volumes suggest that investor interest is growing. If Bitcoin’s dominance continues to weaken, Ethereum could take the lead in the upcoming phase of the market’s bull cycle. In the past, altcoin rallies were triggered by Bitcoin’s decline. In the current scenario, Ethereum is benefiting from capital rotation, reflecting a similar dynamic.
Ethereum’s potential and ecosystem may attract investors who are looking for diversification during Bitcoin’s consolidation period, which will further boost its price. While Bitcoin is going through a tough time, Ethereum’s solid fundamentals and past patterns suggest that a rally to $4,000 is possible. Whether Ethereum can profit from Bitcoin’s decline and lead the altcoin market into a new bullish phase will be determined in the coming days.
