Ethereum Dominance Aims At 2021 Levels

Aug 6➖ First, on the daily chart, ETH.D is pointing straight down. As if there won't be any pauses between now and the next drop; for this index.

➖ Looking here at ETH.D weekly, we can see a major bearish pattern. An inverted cup and handle. The index is showing bearish potential toward the 10.35% - 12.92% range; 11.11%. Levels not seen since mid-2021 or late 2020.


How to interpret this signal?

The Ethereum Dominance Index chart is not the Ether chart, ETHUSDT. The dynamics are different as it relates to the entire market rather than Ethereum's native token.

I think we can interpret this chart to mean that Ethereum is set to drop harder than the rest of the market. We already saw this with the last drop where Ethereum dropped as if it was a memecoin.

One of the reasons why Ethereum has more bearish potential than the rest of the Cryptocurrency market, might be because it bottomed June 2022 while many of the big projects bottomed in November 2022, December and some even later. The fact that Ethereum enjoyed better strength back then, can be the cause why it will now enjoying stronger weakness. The law of alternation. Or it can be related to the merge. Or the other projects will recover faster?

This index is currently bearish.

Namaste.