Ethereum’s Market Share Declines as BlackRock Achieves ETHA Milestone

Ethereum’s market dominance has experienced a 1.5% decrease since the FTX implosion in November 2022. Despite outflows in ETH ETFs, the BlackRock iShares Ethereum Trust has surpassed $1 billion in cumulative net inflows. Ethereum has been consolidating as it struggles to surpass a crucial trendline once again.

On Wednesday, Ethereum saw a more than 1% increase following Glassnode’s report indicating a decline in its market cap dominance compared to Bitcoin. Despite negative flows in the broader ETH ETF category, BlackRock’s iShares Ethereum Trust (ETHA) achieved a milestone by reaching over $1 billion in net inflows.

Glassnode’s recent report highlighted Ethereum’s dominance shrinking from 16.8% to 15.2% post the FTX exchange incident in November 2022. Ethereum’s dominance has remained relatively stable over the past two years, with a decline of 1.5%. In contrast, Bitcoin’s market dominance has surged from 38.7% to over 56% during the same period, impacting stablecoin and altcoin dominance, which have decreased by 9.9% and 5.9%, respectively.

Despite the contraction in market capitalization, capital inflows into Ethereum have continued steadily since late October 2023. Moreover, Glassnode data shows a reduction in Ethereum’s sell-side vs. buy-side (USD) inflow since March, turning positive for the first time since June 2023. This positive trend may be attributed to significant buying pressure from investors following price dips on August 5, reaching lows last observed in January.

In other developments, BlackRock’s iShares Ethereum Trust (ETHA) achieved a significant milestone by surpassing $1 billion in net inflows, with a recorded inflow of $26.8 million. However, despite ETHA’s positive performance, combined net flows for Ethereum ETFs remained negative, with net outflows of $6.5 million. Ethereum ETFs have seen four consecutive days of negative flows, contrasting Bitcoin ETFs, which have experienced four consecutive days of net inflows.

On the technical analysis front, Ethereum is trading around $2,600, marking a 1% increase on Wednesday. Traders have witnessed over $40 million in liquidations in the past 24 hours, with long liquidations accounting for $35.36 million and short liquidations for $4.66 million. Ethereum’s price consolidation over the past week suggests uncertainty among traders, with resistance around $2,783 and a descending trendline from May 27 to September 27 constraining ETH within the $2,500 to $2,700 range.

Looking ahead, the trendline indicates a potential decline for ETH towards the $2,000 to $2,200 range in the coming weeks before a potential rally. The Relative Strength Index (RSI) sits below its midline at 40, signaling neutrality, while the Awesome Oscillator’s consecutive shorter green bars below the zero line hint at a possible bullish shift despite the prevailing bearish trend. A daily candlestick close above the $2,783 resistance level could invalidate the short-term bearish outlook.