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Is competition hindering Ethereum's growth amid bull market?
Yes, according to Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, who analyzed the bitcoin dominance chart and noted a 'beautiful parallel' that suggests altcoins will outperform bitcoin in the near term, bringing bitcoin dominance down.
Soloway uses a technical approach, relying on historical patterns and chart analysis to determine when to buy altcoins and when to exit altcoins and buy bitcoin, specifically using the parallel on the bitcoin dominance chart.
Soloway believes that if ethereum can get through the level of $3,500 to $3,700, 'the road is much clearer and it could take off', potentially reaching $7,500, which would be a 2x increase, a reasonable target in a bull market.
Soloway is cautious because ethereum has underperformed as much as it has, and he wonders if Solana is 'eating some of its lunch', potentially impacting ethereum's growth.
Soloway emphasizes the importance of competition in the market, highlighting bitcoin as a hedge against fiat and ethereum as a potential competitor, with the possibility of ethereum outperforming bitcoin in a bull market.
Bitcoin's dominance in the cryptocurrency market and the potential for altcoins to outperform in the upcoming bull market were the focal points of a recent conversation between Co-host of Altcoin Daily, Austin Arnold, and Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com.
Austin Arnold posed a question pertinent to altcoin traders: "Looking at bitcoin dominance, do you have any insights on when altcoins might outperform bitcoin?" Gareth Soloway responded by analyzing the bitcoin dominance chart, noting, "We see bitcoin hovering in here." He described a "beautiful parallel" where "the highs and the lows are marked," suggesting that "the altcoins are still going to outperform bitcoin in the near term," which would "bring bitcoin dominance down."
Soloway elaborated on his technical approach, stating, "I'm just playing as a technical trader, using this parallel to say when to buy alts and when to exit alts and buy bitcoin." This strategy relies on historical patterns and chart analysis to navigate the volatile crypto market.
Turning the focus to ethereum, Arnold inquired, "If ... that perfect storm happens and maybe ethereum outperforms bitcoin, what's your outlook for 2025 for ethereum?" Soloway pointed out that ethereum has been "rallying up into this little level," and if it can "get through anywhere between $3,500 and $3,700, then I think the road is much clearer and it could take off."
This weekend, ethereum topped $3,700 for the first time since June.
When asked if a "2x" is reasonable in a bull market, Soloway affirmed, "It absolutely is reasonable." He suggested that ethereum could "go up to about $7,500," indicating a significant potential upside. However, he expressed caution, noting, "It does make me a little bit nervous that ethereum has underperformed as much as it has," and wondered if "Solana is eating some of its lunch."
Concluding the discussion, Soloway emphasized the importance of competition in the market. "If there's competition... that can happen with ethereum versus bitcoin is the pure play of digital gold," he said, highlighting bitcoin as a hedge "against fiat."