- Ethereum has surged nearly 15% to reclaim market share after hitting record-low dominance levels, outperforming Bitcoin and the broader crypto market with a 12% daily gain.
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Analysts point to technical patterns, short squeezes, and anticipation around the upcoming Pectra upgrade as key drivers behind the rebound.
Ethereum (ETH) is showing signs of life after a sluggish period. A recent price surge has not only boosted its value but also helped it regain some of its lost market share. Investors are watching closely to see if this recovery can be sustained.
What’s Driving the Rebound?
Ethereum has surged nearly 15%, reaching above $1,800 on April 23. It’s currently trading at 1798, up 12% in the last 24 hours. This impressive gain surpasses Bitcoin’s 6% increase and the overall crypto market’s 5% rise, which has pushed the total market value back to $3 trillion. Since hitting a low of $1,400 on April 9, Ethereum has now recovered almost 30%.
Some analysts believe that this rally indicates a potential end to the recent struggles for the second-largest cryptocurrency. According to crypto trader Income Sharks, Ethereum’s strong performance often lifts the entire crypto market. “You can hate Ethereum all you want, but when it has a big day, the entire crypto ecosystem goes up,” he stated.
Market analyst Ash Crypto sees similarities between Ethereum’s current chart pattern and Bitcoin’s performance in late 2024, suggesting a possible breakout. According to his charts, both Bitcoin and Ethereum show a strong similarity in their recent price action, they each broke out of descending wedge patterns, flipped key resistance levels into support, with BTC around $75K, ETH around $4K, and are now displaying strong bullish momentum with higher highs on the weekly timeframe.
This pattern suggests a potential continuation of their uptrends, with price projections pointing to new highs (BTC toward $ 120k+, ETH toward $ 8k+), indicating aligned market sentiment and long-term bullish structure for both assets.
However, not everyone is convinced that Ethereum is moving independently. Jeff Mei, COO of BTSE, suggests that Ethereum’s gains are simply mirroring Bitcoin’s price movements and overall market sentiment, boosted by Paul Atkins’ confirmation as chair of the SEC.
Earlier in April, Ethereum’s market share had declined amidst a wider market downturn fueled by trade war anxieties. On April 22, analyst Rekt Capital noted that Ethereum’s market dominance had fallen to all-time lows, although it managed to hold support at the 2019 lows.
Since dropping to new All Time Lows, Ethereum Dominance has managed to protect 2019 All Time Lows as support (black) for now. ETH Dominance needs to Monthly Close inside green to develop a reversal base like back in 2019-2020.
Data from TradingView shows that Ethereum’s dominance fell to 7% on April 22, but the subsequent price increase has pushed it back above 7.5% on April 23.
Markus Thielen from 10x Research points out that Ethereum’s rise may be due to a heavily shorted market experiencing a squeeze. He adds that Ethereum was technically oversold, making it ripe for a rebound.
Looking ahead, the upcoming Pectra upgrade is generating excitement. Scheduled to go live on May 7, Pectra aims to improve validator flexibility, network scalability, user experience, and execution efficiency. Pectra includes 11 Ethereum Improvement Proposals (EIPs), making it the most ambitious Ethereum upgrade to date.