Crypto Industry News:
Ethereum's rally above $2,000 after a successful update to Shanghai saw Bitcoin's dominance fall after nearly two years of record high levels of dominance. Thanks to the improvement of the network, Ethereum has taken another milestone on the way to full Proof of Stake. Initially, investors did not know how the fork would end, because many investors gained the opportunity to withdraw their ETH from the chain. In the end, however, the bulls showed their strength. The Ethereum fork was the catalyst-trigger of this downward wave of undivided 'bitcoin dominance'. This may herald that the capital will gradually start to shift to other crypto-projects.
Is this enough to confirm the 'flippening' hypothesis, i.e. the dethronement of Bitcoin by ETH? On Wednesday, BTC dominance fell by nearly 1% from 49% to 48%. Thus, dominance then reached a peak last seen in July 2021. Ethereum's dominance is around 20% and is the highest for nearly a month. This shows that, especially against the background of Bitcoin, Ethereum caught the proverbial wind in its sails. However, Bitcoin's position after such a promising rally may be at risk.
Technical Market Outlook:
The ETH/USD pair has broken above the level of $2,000 with a new yearly high being made at the level of $2,129 and keeps consolidating around this level. The next target for bulls is seen at the level of $2,151. The strong and positive momentum on the H4 time frame chart support the short-term bullish outlook for Ethereum, however, the market conditions are extremely overbought on H4 and Daily time frame charts. The level of $1,858, $1,845 and $1,832 will now act as the support for bulls, so please pay attention to this level during the local pull-back.
Weekly Pivot Points:
WR3 - $2,208
WR2 - $2,153
WR1 - $2,124
Weekly Pivot - $2,098
WS1 - $2,069
WS2 - $2,043
WS3 - $1,988
Trading Outlook:
The Ethereum market has been seen making lower highs and lower low since the swing high was made in the middle of the August 2022 at the level of $2,029. This is the key level for bulls, so it needs to be broken in order to continue the up trend. The key technical support is seen at $1,368, so as long as the market trades above this level, the outlook remains bullish.
