Over the weekend, the leader of altcoins, Ethereum Price hit a seven-week high of $2,700, but the bears seized control and pulled it lower. It fell below $2,500 and has stayed there ever since. Ironically, this comes as the London Hard Fork approaches. The much-awaited network update, which is set to take place tomorrow, August 5th.
Making a bullish case for ETH amid plunging prices is popular crypto analyst Nicholas Merten. He says Ethereum is poised to enter a new bull market phase.
Merten analyzes Ethereum’s market domination in a new strategy session. He believes Ethereum’s market domination is about to explode, as it attempts to break through a key resistance level.
“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.
He emphasizes that the metric is crucial to predict a surge. Also, it is a major psychological level because after eth went past that range, it soared all the way up to 32 percent market dominance, an increase of over 50 percent over previous market share ownership.
Ethreum’s market domination is growing, indicating that the dominant smart contract platform is outperforming other crypto assets.
London Hardfork to be the catalyst!
According to the analyst, Ethereum’s EIP-1559, a long-awaited improvement that will burn a portion of transaction fees, could support the bullish argument for ETH by placing deflationary pressure on the currency.
….the available ETH in the market starts to truly actually decrease rather than increase, even with staking rewards. And that’s a really interesting dynamic here that we have to keep in mind.”
Merten goes on to predict that a second shoot-out might happen, just as it occurred in the middle of 2017. Ethereum will be the safe bet if and when this happens, as altcoins will undoubtedly rise once the bull run begins.