Ethereum’s Stabilizing Dominance: Key Levels for a Bullish Trend

• Ethereum’s dominance stabilizes at 12.82%, signaling potential for recovery.
• Breaking 13% resistance could confirm Ethereum’s bullish reversal and growth.
• 78.3% of Ethereum futures traders are bullish, reflecting strong market optimism.

The cryptocurrency market may be about to turn a corner. Ethereum’s (ETH) dominance is showing signs of stabilizing after a months-long decline, and this could signal a potential reversal. 

Historically, the fourth quarter has been a strong period for Ethereum, often marking a bottom against Bitcoin (BTC). According to crypto analyst Mikybull Crypto, ETH is now showing strength over BTC, which could set the stage for a potential altcoin surge in Q1.

Ethereum’s Stabilizing Dominance

Over the past few months, Ethereum’s market dominance has steadily declined, falling from approximately 18% mid-year to a recent low of 12%. This drop reflected investors moving their capital to other cryptocurrencies or assets. 

But the trend appears to be changing. Ethereum’s dominance has now stabilized at 12.82%, showing early signs of recovery.

Key Technical Levels to Watch

Ethereum’s dominance chart presents critical levels that could influence its near-term trajectory. The 12% mark has proven to be a reliable support zone. Each time the dominance neared this level, it rebounded, suggesting investor confidence in this range. 

Meanwhile, resistance sits between 13% and 13.5%, where previous attempts to rally failed.

Marketcap ETH Dominance, % Source: Trading view

A break above this resistance level, coupled with increased trading volume, could confirm a bullish reversal. Consistent daily closes above 13% would likely lead to further gains.

Market Sentiment and Broader Trends

The recent stabilization in Ethereum dominance suggests a change in market sentiment. Traders may be reconsidering Ethereum’s value amid shifting market conditions. Layer 2 scaling solutions, competitive developments, and macroeconomic factors are likely contributing to this renewed interest.

Read also: Will Ethereum’s Strong Q1 Performance in 2025 Propel Altcoins to New Heights?

Additionally, current trading data supports the optimism. As noted by crypto analyst Ali Martinez, around 78.30% of traders with open Ethereum futures on major exchanges are bullish on Ethereum’s price.

The current price of ethereum stands at $3,415.90 , with a 24-hour trading volume of over $16 billion. Ethereum has gained 0.88% in the past 24 hours, reflecting positive market sentiment.