Ethereum is seeing renewed vigor as the price enters the beginning stages of another bull rally. Following the long-suffering month of September, ETH’s price had crashed below $3,000, putting the digital asset in a tight spot as bears tightened their grip on the market. This was not helped by decreased interest as the market had moved back into extreme fear. Traders moved more conservatively to avoid heavy losses during this time. But as the month of September drew to a close, the tide had turned and the crypto market had begun to recover.
Related Reading | Bitcoin Loses Steam As Institutional Investors Shift Focus To Ethereum
Less than a week into the month of October, cryptocurrencies have begun to recover their lost value from the previous month. A 3.14% price change in the past 24 hours has set Ethereum on a path towards a test of the $3,500 resistance point. This price point provided significant resistance to the asset in the month of September. But as market sentiment turns favorable this month, recovery trends have set a course for $4,000. As the market opens for another trading day, traders are expected to take bigger leaps in their trades with this bullish trend.
ETH price trading at $3,444 | Source: ETHUSD on TradingView.com
Ethereum Dominance On The Rise
Ethereum has taken more market share in the past couple of months. The digital asset is fast becoming a favorite among individual and institutional investors, and with this, ETH has taken up more space in the market. The current Ethereum market dominance sits at 18.42. Still less than half of the bitcoin market dominance, but a 1% increase from last month’s low of 17%. The increase spells more adoption for the asset and an inevitable price run-up.
ETH dominance up above 18% | Source: Market Cap ETH Dominance on TradingView.com
Another factor driving this is the adoption of Ethereum and its related use cases. The growth of decentralized finance (DeFi) has sent the market into an investing frenzy as investors clamor to get returns on their crypto holdings.
Big Money Rolls Into ETH
Institutional investors are now rolling more money into Ethereum than they are in bitcoin. The asset which saw futures trading begin much later than that of bitcoin has overtaken its predecessor. Assets under management for bitcoin had fallen while Ethereum is on the rise. ETH-based products are seeing more interest as Grayscale reported that its Ethereum Trust was the most traded digital asset product for the month of September.
Recoveries are happening across the crypto market and the top coins are taking the lead on this one. If Ethereum maintains its current momentum, then we would most likely see a $3,500 test before the day is over.
Featured image from Bankrate, charts from TradingView.com