As Ethereum can withstand the decline of Bitcoin, there is speculation that a shift towards altcoins (especially ETH) is imminent. With Bitcoin struggling to maintain momentum around $100,000, Ethereum's price action is under close scrutiny, as it is currently trading above $3,400. The viewpoint of a rebound led by Ethereum is supported by the historical trend of Bitcoin's dominance declining during corrections. When Bitcoin's dominance decreases, altcoins' market share and price trends typically skyrocket. This pattern was best exemplified in the cryptocurrency market of 2017 when Ethereum and other altcoins surged while Bitcoin cooled down. Based on the increase in trading volume and bullish technical indicators, Ethereum appears to be strengthening under the current circumstances.
As the RSI is in the neutral zone, there is still potential for further upside. Ethereum has been in a strong uptrend and has broken through significant resistance levels such as $3,000 and $3,200. Given Ethereum's relative stability amidst the uncertainty brought by Bitcoin's decline, it is the preferred choice for investors. If the price rises above $3,500, it may test the important psychological and technical level of $4,000.
Ethereum is receiving strong support from the 50-day moving average, and the rising trading volume indicates growing investor interest. If Bitcoin's dominance continues to weaken, Ethereum may take the lead in the upcoming phase of the market bull cycle. Historically, altcoin rebounds have been triggered by Bitcoin's declines. In the current situation, Ethereum is benefiting from capital rotation, reflecting a similar dynamic. The potential and ecosystem of Ethereum may attract investors looking to diversify during Bitcoin's consolidation, which will further elevate its price. While Bitcoin is experiencing a tough period, Ethereum's solid foundation and past patterns suggest that a rebound 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.