Ethereum’s price surged nearly 15%, surpassing $1,800 on April 23, recovering nearly 30% since its April 9 crash. This positive performance has improved its market dominance, which had previously hit an all-time low of 7%. Analysts suggest that the recovery is driven by market dynamics and an upcoming mainnet upgrade, despite some skepticism regarding its independence from Bitcoin’s movements.
Ethereum has recently experienced a notable price increase after weeks of stagnation, aiding its market dominance which had previously hit historic lows. Specifically, the price of Ether (ETH) surged nearly 15% within 24 hours, surpassing $1,800 on April 23. This performance eclipsed Bitcoin’s 6% increase and the overall crypto market, which rose approximately 5%, reaching a cumulative value of $3 trillion.
Since plummeting to $1,400 on April 9, Ethereum has recaptured nearly 30% of its value. This recovery has led several analysts to speculate that the downturn for the second-largest cryptocurrency could be nearing an end. Notably, crypto trader “Income Sharks” remarked that Ethereum’s positive performance tends to positively influence the broader crypto ecosystem.
Market analyst “Ash Crypto” suggested that Ethereum is on the verge of a significant upward movement, drawing parallels between its current chart pattern and Bitcoin’s performance in late 2024. Conversely, Jeff Mei, COO at the crypto exchange BTSE, expressed skepticism, arguing that Ethereum’s resurgence is largely a reaction to Bitcoin and overall market trends, especially following Paul Atkins’ confirmation as the SEC chair, which has improved market sentiment.
Earlier this month, Ethereum’s value had dropped to bear market levels, significantly affecting its market share amid concerns of a potential trade war. Analyst “Rekt Capital” highlighted that ETH’s market dominance had reached its lowest level since September 2019, at 7% on April 22. However, after the recent price increase, its market share quickly regained momentum, rising above 7.5%.
Markus Thielen from 10x Research noted that the current market environment, characterised by heavy short positions, has contributed to Ethereum’s upward movement, stating that the market is undergoing a short squeeze. Additionally, Ethereum was technically oversold on both daily and weekly timeframes, suggesting a rebound was imminent. There is also a crucial fundamental driver behind this recovery, linked to the anticipated upgrade moving to mainnet.
