While Bitcoin enters a consolidation phase after the approval of a spot ETF, Ethereum (ETH) is making strong upward moves, closing the gap with the leading cryptocurrency. According to data from Santiment, Ethereum’s price dominance over Bitcoin has significantly increased, with several on-chain metrics signaling positive trends for ETH.
Santiment’s data highlights a 22.4% increase in Ethereum’s price dominance in just the past week. The network’s growing popularity is evident from the creation of 89.4 thousand new Ethereum wallet addresses daily, with a notable 96.3 thousand addresses created on a single recent day.
In addition to the surge in on-chain activity, Ethereum’s supply on crypto exchanges is nearing an all-time low of 8.05%. This trend towards self-custody and staking suggests a reduced risk of a sell-off in the short term, presenting a more positive scenario than concerns over increasing exchange supply.
Ethereum’s price tested the critical $2,500 level on January 16th after a slight pullback. This level, once a strong resistance, now serves as support for the altcoin king. The price action indicates that Ethereum is attempting to enter a consolidation phase.
The $2,700 level is an important threshold, marking the upper boundary of the short-term trading range. Analysts believe a breakthrough above this level could set the stage for a potential rally, with investors possibly joining the upswing due to FOMO. Conversely, if Ethereum falls below this level, it could move towards the 20-Day Exponential Moving Average at $2,300. Investors should closely monitor these critical levels to detect potential short-term price trajectory changes for Ethereum.