Ethereum's price movement is at a crossroads as Donald Trump's inauguration approaches. Market analysis suggests potential changes in Ethereum's dominance, possibly affecting its price and investment strategies.
Ethereum Price Rise
Historically, when Ethereum's dominance declines, reaching key levels like 14%, a rebound typically follows, suggesting a potential rally. Through analysis up to 2025, a decline to around 12.10% followed by a rise towards a target above 18% is noted. Divergence in RSI indicators also signals a potential trend reversal. Increased exchange volumes by late 2024 support such expectations.
Return of Staked Ethereum
Analyzing Ethereum's total staked balance, an increase to 34.2 million ETH by January 2025 is observed, representing 28.44% of its circulating supply. This process contributes to the stability of Ethereum's economic model, potentially fostering market price appreciation.
Impact of Trump's Inauguration
The stabilization of exchange volumes post-holidays often precedes an increase in market activity as Trump's inauguration approaches. Political events traditionally inject volatility, suggesting possible changes in the investment climate. The stability of Ethereum's dominance, despite price declines, could signal its relative strength compared to other cryptocurrencies.
Potential changes in Ethereum's market structure are on the horizon amid political and economic events, possibly presenting strategic investment opportunities in anticipation of shifts in market dynamics.
