Altcoin dominance drops 15% in 30 days
The share of altcoins in the overall cryptocurrency market has significantly dropped by double figures over the last four weeks. Currently, it stands at 9.88%, having decreased by 15% during the previous month, as per data from TradingView.
The term 'altcoin dominance' denotes the collective market share of all cryptocurrencies excluding Bitcoin. A downturn in this metric signifies that altcoins' aggregate market cap is contracting relative to that of BTC.
This trend could suggest that investors are shifting their capital from altcoins to BTC, viewing the latter as a more secure and dependable investment.
During periods of market tightening, it's common to see a reduction in altcoin dominance as Bitcoin's share grows, stemming from altcoins losing value or not drawing investor interest.
Yet, within the same timeframe, Bitcoin's market share has shown no marked increase. As of the latest figures, it was documented at 55.36%, showing a decline of 1.03% over the past month and 0.69% over the previous week.
Ethereum is currently trading at $3,561. Despite a broad downtrend in altcoin dominance across the market, the altcoin's price has risen by 14% in the last 30 days, as reported by CoinMarketCap.
Detailed examination on its daily chart showed that it fell through the support level at $3693 on June 10, subsequently turning it into a level of resistance.
With a modest increase of 1% in its price over the past week, ETH's value has been fluctuating within a defined band, encountering resistance at the $3693 level and establishing support at $3428.
Reflective of the broader market sentiment towards ETH, crucial momentum indicators were tracking below their mid-points at the time of analysis.
For instance, the Relative Strength Index (RSI) for ETH was at 48.60, while its Money Flow Index (MFI) stood at 29.59.
According to their current readings, selling pressure outweighs buying momentum significantly.
Should this downward trend persist, ETH may see its value dip to $3496.
Conversely, a reversal of this trend could see its price climb towards $3658.
