- Ethereum market dominance has shrunk by 1.5% since the FTX implosion in November 2022.
- BlackRock iShares Ethereum Trust has crossed $1 billion in cumulative net inflows despite ETH ETF outflows.
- Ethereum continues consolidation as it fails to move above key trendline again.
Ethereum (ETH) is up more than 1% on Wednesday following Glassnode's report showing its market cap dominance loss compared to Bitcoin. Meanwhile, despite negative flows in the broader ETH ETF category, BlackRock's iShares Ethereum Trust (ETHA) crossed the $1 billion net inflow milestone.
Daily digest market movers: Ethereum dominance, BlackRock's ETHA milestone
Ethereum dominance has shrunk from 16.8% to 15.2% since the FTX exchange implosion in November 2022, noted Glassnode in a recent report. Dominance is the ratio of an asset's market capitalization to the cumulative market capitalization of all other cryptocurrencies.
"As the second largest asset in the ecosystem, Ethereum has recorded a dominance decline of 1.5%, remaining relatively flat over the past two years," wrote Glassnode analysts.
In comparison, Bitcoin's market dominance has grown from 38.7% to over 56% within the same time. The rise also comes at the expense of stablecoin and altcoin dominance, which have declined by 9.9% and 5.9%, respectively.
Major Asset Dominance
Despite the market capitalization contraction, capital has fairly continued flowing into Ethereum since late October 2023.
Additionally, Ethereum's sell-side vs buy-side (USD) inflow reduced consistently since March and has now turned positive for the first time since June 2023, as per Glassnode data. A potential reason for the positive data may be heavy buying pressure from investors after prices dipped on August 5 to lows last seen in January.
Meanwhile, BlackRock's iShares Ethereum Trust (ETHA) crossed the $1 billion threshold on Tuesday after recording a net inflow of $26.8 million, according to data from Farside Investors. The milestone places ETHA among the top seven ETF launches, noted Nate Geraci, president of the ETF Store.
Despite ETHA's positive move, the combined net flows for Ethereum ETFs were negative, posting net outflows of $6.5 million. ETH ETFs have now stretched their outflow streak to four consecutive trading days of negative flows. This is in contrast to Bitcoin ETFs, which have recorded four consecutive days of net inflows.
Ethereum ETF Flow
ETH technical analysis: Ethereum continues failed attempts to move above key trendline
Ethereum is trading around $2,600 on Wednesday, up 1% on the day. In the past 24 hours, Ethereum traders have sustained over $40 million in liquidations, with long and short liquidations accounting for $35.36 million and $4.66 million, respectively.
Ethereum's price has been consolidating in the past week, indicating indecisiveness among traders. While buyers have attempted to stage a recovery, the resistance around $2,783 and a descending trendline extending from May 27 to September 27 has held ETH around the $2,500 to $2,700 range.
ETH/USDT Daily chart
The trendline suggests ETH could decline toward the $2,000 to $2,200 range in the coming weeks before staging a rally. ETH posted similar declines from August 2022 to November 2022 and July 2023 to October 2023 before eventually riding a three-month rally on both occasions.
The Relative Strength Index (RSI) is below its midline at 40, indicating neutrality. However, the Awesome Oscillator posting consecutive shorter green bars below the zero line suggests a bullish turnaround may be on the cards despite the prevailing bearish trend.
A daily candlestick close above the $2,783 resistance will invalidate the short-term bearish thesis.
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum weak open interest signals consolidation, ETH stays within sight of $2,600
Ethereum is down nearly 1% on Tuesday as its weak open interest indicates that prices will likely remain range-bound in the coming days. The choppy price action coincides with ETH ETFs recording a third consecutive day of negative flows.
BRETT, FLOKI, WIF lead meme coin recovery
BRETT jumped by more than 30% briefly after Binance Futures listing. FLOKI posted over 10% gains after an announcement that holders will receive CAT meme token airdrop. WIF and other top meme coins trade in the green as the meme market looks set to stage a recovery.
Bitcoin stays below $60K despite increased transfer volume and institutional adoption
Bitcoin is up nearly 1% on Tuesday as CryptoQuant data shows buyers have been absorbing panic selling pressure since the recent market crash. This is also evidenced in Bitwise's report, which reveals that institutional investors are still buying Bitcoin despite the recent price decline.
XRP climbs above $0.60, Ripple declares successful XRP Ledger testnet reset
Ripple announced the rest of its XRP Ledger blockchain. The XRP Ledger is a decentralized public blockchain that allows for the transfer of native token XRP, fiat and other digital assets. XRP Ledger testnet has been reset, this improvement boosts efficiency and reduces the cost of running a node.
Bitcoin: Signs of weakness persist
Bitcoin (BTC) trades above $58,000 on Friday after after testing and failing to overcome the resistance level around $62,000 earlier in the week. The risk-on mood returned to markets this week, Marathon Digital added 4,141 BTC worth $249 million to its holdings and the US SEC approved a MicroStrategy leveraged ETF, potentially giving investors more exposure to Bitcoin.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.