Ethereum Price Prediction As Market Capitalization Shrinks, ETH Recovery Wrecked?
Ethereum price is once again dealing with immense selling pressure while bulls move swiftly to defend support at $1,550. The hype around the approval of a bunch of Ether futures ETFs early last week propelled ETH to $1,750 but a weak crypto market structure coupled with profit-taking among investors cut short the recovery, leading to a sharp dive.
The largest smart contracts token although barely unchanged over the last 24 hours, is down 4.6% in a week to trade at $1,557 on Thursday. Approximately $7.5 billion in trading volume has come in during the same period while Ether’s market capitalization holds at $187 billion.
Ethereum Cedes Ground As Bitcoin Gains
Ethereum is ceding ground to the largest cryptocurrency, Bitcoin as investors seek exposure to the most popular digital asset amid the ongoing geopolitical tensions caused by the war between Israel and Hamas.
Since June, Ethereum’s market value has shrunk by 18% while Bitcoin lost around half of the same amount in the period to $522 billion. In the last seven days, market value decreased by 4.6% compared to Bitcoin’s 2.9% drop to $26,792.
This downward trend has led to a drop in Ethereum’s percentage of the total market capitalization to 17.9% from approximately 18.4% at the beginning of 2023. According to market data aggregated by CoinMarketCap, Bitcoin has come up stronger with its market value rising from 40% at the beginning of the year to 50%.
