ETH Season Finally Shaping Up as Ethereum (ETH) Market Dominance May Replace Full Altcoin Market

As ETH spreads to multiple protocols and trades as an ETF asset, its importance and dominance are expected to grow. ETH may gain importance and outperform

As the market awaits the launch of spot Ethereum ETFs, the price of ETH has shown some recovery. However, it is still trading at a discount to recent highs and showing limited mainstream attention.

After a recent day of recovery, ETH is now trading at $3,147.75. The coin attempts to break above its 200-day moving average, which might signal a breakout from recent consolidation. Past week also saw consistently high trading volumes above $13 billion in 24 hours.

ETH has bounced from its lows but is yet to revisit its yearly highs. Even at close to $4,000, ETH did not manage to trigger a full altcoin season, as most new investors went into the meme token hype. The next expected move from ETH would be to reclaim the $3,280 range for a more secure rally.

ETH is still far from attacking positions to liquidate above $3,600, but a move to that range may accelerate the climb in the short term. The current liquidation heatmap still carries the risk of moving downward to liquidate more positions under $3,000.

Relative Strength Index (RSI) on the daily chart now carries the ETH momentum into the neutral zone. The past few weeks saw ETH lose some of its volatility, with the past volatility marker showing a drop to 1.67% from 2.27% in late June.

ETH has shown limited hype from general crypto investors and awaits a direction from ETF trades or another event to boost price action. ETH volatility is inching up, though with some caution. The volatility marker is up to 2.27%, from 1.67% in late June. For months, the ETH market cap dominance has also been relatively constant, between 17 and 18% of the market.

Most investors are also undecided on ETH. Both crowd money and smart money are close to neutral, swinging between slightly bearish and slightly bullish. This relative stagnation has caused analysts to see ETH as a “ticking timebomb,” ready to rally once the ETF price action and inflows start.

Bitcoin maximalists have attacked the status of ETH, as it continues to lag behind the leading coin. Yet ETH is still the leader of decentralized finance and tokenization, while Bitcoin still lacks similar DeFi infrastructure.

The current status of the ETH ETF means the asset is yet to gauge mainstream attention. The founder of Nvidia, Jensen Huand, recently made an optimistic remark on ETH as a well-established network.

As a single gauge of mainstream interest, the Grayscale Ethereum Trust is trading at a discount. The fund is now available at the equivalent of $2,900 per ETH, lagging the recent spot market recovery. Yet the ETHE stock price quickly reflects the performance of spot ETH during more bullish periods.

Grayscale retains most of its haul of 2.96 million ETH, acquired at much lower prices, and has stopped sending funds to exchanges for now. The Ethereum network is tied to other assets, mostly through the flow of altcoins. For now, altcoins still flow from Ethereum into several L2 protocols. However, Ethereum-based Tether (USDT) and other stablecoins may remain within the Ethereum market if the asset is more promising.

Some predictions see ETH as becoming the trigger for an altcoin season if investors want to risk smaller, more volatile assets.

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