Ethereum is struggling to break through key resistance levels, even after the recent surge in the cryptocurrency market led by Bitcoin. While ETH price remains under pressure, there is encouraging news for investors. Recent data from IntoTheBlock highlights Ethereum’s continued dominance over decentralized exchange (DEX) volume, solidifying its position as a major player in the DeFi space.
This information is essential for those concerned about Ethereum’s price underperformance relative to Bitcoin and other altcoins. The data suggests that despite the current price struggles, Ethereum’s network remains robust and highly utilized, especially in DeFi.
This broader market perspective can help investors stay informed and make better long-term decisions by focusing not only on price, but also on Ethereum’s underlying strength and growing utility. As the market continues to evolve, Ethereum’s role in DeFi could remain a critical factor in future price action.
Ethereum DEX Dominance Could Be Challenged
One of the main products born from DeFi is the decentralized exchange (DEX), which allows users to trade assets in a permissionless manner and without the need for intermediaries. DEXs also allow users to become market makers by providing liquidity to asset pairs and earning commissions on trades between these pairs.
According to a recent report by IntoTheBlock on X, Ethereum remains the dominant force in terms of DEX volume, controlling nearly 35% of the total market share. However, other blockchain networks are increasingly challenging Ethereum’s dominance. Solana, in particular, is emerging as a serious contender, gradually solidifying its position in the DEX space. Solana’s growing volume underscores its growing relevance despite Ethereum’s long-standing influence.
Other blockchains, such as Arbitrum and Binance Smart Chain (BSC), also hold a substantial share of the DEX market, with Arbitrum accounting for 14% of total DEX volume and BSC 11%.
These networks continue to gain traction as they offer faster transaction speeds and lower costs, making them attractive alternatives for decentralized trading. While Base, a new player, saw rapid growth in the beginning, it has since plateaued, indicating the fierce competition within the DeFi landscape.
The competition to become the market leader in DEX is heating up, with various blockchain ecosystems racing to increase their market share. Ethereum’s vast liquidity and established user base give it a significant advantage, but Solana, Arbitrum, and BSC are quickly gaining ground.
ETH Technical Analysis
Ethereum (ETH) is currently trading at $2,427 after a 5% rally on Friday. Despite this recent surge, ETH has underperformed this cycle, with the latest price action showing similar struggles. The price has struggled to break above the $2,460 resistance and has yet to test the 4-hour exponential moving average (EMA) at $2,534.
This persistent resistance is fueling fear and uncertainty among investors, suggesting a possible return to lower levels. Support levels to watch include $2,300 and, if further declines occur, a deeper decline around $2,150.
Conversely, if ETH manages to recover and hold above the 4-hour 200 EMA, the outlook could change positively. Successfully breaking above this critical level could position ETH for a possible rally towards $2,600 or even higher, providing a more bullish scenario. The direction of the market depends on whether ETH can maintain its momentum above the EMA or whether it will face continued resistance and possible consolidation at lower levels.
Featured image of Dall-E, chart by TradingView
