Nicholas Merten: Market Dominance Suggests Ethereum Is Set To Explode
According to a popular cryptocurrency analyst Nicholas Merten, Ethereum is gearing up to explode into a new bull market phase.
Crypto Analyst Nicholas Merten recently said in a video analysis session on YouTube that Ethereum’s price is ready to explode. The analyst pointed out that price analysis really isn’t the reason that the number two cryptocurrency by market cap is set to explode, but the crypto market dominance actually suggest this.
Merten believes that current market trends are very similar to what was done in the market back in 2017. Going back to when the last bull market had started in 2017. Before fizzling out and turning into a full-blown bear market by the time the middle of the year 2018 rolled around. The current trends of higher lows that have been seen so far in the market continue to mirror the cycle of 2015 when Ethereum had started to show momentum in the market.
This momentum had continued on for Ethereum straight through 2016 and all the way into 2017, leading up to the bull cycle that had begun in November 2017.
“Even with a variety of other cryptocurrencies now that Etheruem has to compete with or outpace to maintain market share, it’s been generally holding up at a resistance range we saw back here between March and May of 2017, around the 19% to 20% range for market dominance.
The Key To Another Shoot-Up
Market dominance continues to be a good way to gauge how the price of a coin is going to do in the crypto market. Number 1 cryptocurrency Bitcoin, continues to maintain the majority market share, and as such, continues to be the most valuable coin in the market.
But with Ethereum picking up more market share, there is no doubt that ETH is becoming more of a valuable asset. At one point, Etheruem had garnered as much as 32% market share. Showing how fast the cryptocurrency is gaining value ahead of other coins in the market.
Also relevant is the fact that Ethereum is much younger crypto than Bitcoin. Recently celebrating its fifth year anniversary, Ethereum has continued outperformed Bitcoin. Despite the latter being twice as old in the market.
“This showcases that this is a really critical metric we need to watch for. And that is a huge psychological level because once we broke through that range, we climbed all the way up here to 32% market dominance. An over 50% increase of previous ownership of market share.”
According to Merten, Ethereum looks as ready as any crypto for a sizeable secondary bull market in the near future.
“I think Ethereum is a safe bet as we go into the bull market here. The continuation of altcoins, as we go into the secondary wave… We might very well have that secondary shoot-up like we had back here in the middle of 2017.”
Ethereum Breaking From Bitcoin
Ethereum continues to see uptrends in the price following the close of last weekend. The coin so far seems to be dissociating from the price of bitcoin and charting its own course upwards. Continuing to rally while the price of bitcoin experienced dips following the latest rally.
As Ethereum continues to gain more market dominance, the asset is more likely to rally at its own pace as opposed to following the market trends of bitcoin. This would put Ethereum on love ground with the pioneer cryptocurrency if the value of ETH stops being reliant on the value of BTC.
At the time of writing, ETH price is up 6.72% in the last 24 hours, and trading at $2,727 according to CoinMarketCap.
