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Ethereum Rally Pushes Price Above $4,600 as Bitcoin Dominance Falls to 59%
Ethereum has captured market attention by climbing above $4,600, posting an impressive 10% gain in the past 24 hours as traders position themselves ahead of a potential Federal Reserve rate cut in September. The surge has sparked renewed optimism about ETH’s price trajectory and its ability to challenge previous records.
Polymarket Traders Eye $5,000 Target
Market sentiment has reached fever pitch on prediction platform Polymarket, where bettors are increasingly confident that Ethereum could reach $5,000 before the end of August. More aggressive traders are even assigning a 28% probability to the cryptocurrency hitting $5,800 within the same timeframe.
This bullish momentum has significantly impacted market dynamics, with Bitcoin dominance dropping from 65% to 59% as investors rotate capital into alternative cryptocurrencies. The shift demonstrates growing confidence in the broader altcoin market.
Technical Analysis Reveals Key Resistance
Despite the excitement, analysts at Glassnode have identified potential headwinds ahead. Their recent report indicates that ETH is approaching the +1 standard deviation “Active Realized Price” band around $4,700, a technical level that has historically triggered significant selling pressure in previous market cycles.
The current rally brings Ethereum within striking distance of its all-time high of $4,876 set in 2021, creating a crucial test for sustained upward momentum.
Hidden Liquidity Concerns Emerge
Behind the celebratory headlines, CryptoQuant data reveals a concerning trend that could impact Ethereum’s long-term growth prospects. The blockchain is increasingly serving as a liquidity source for TRON’s USDT ecosystem, creating a one-way flow of value.
Recent data shows $7.7 million worth of ETH was bridged to TRON and converted to USDT on August 9, while June 25 witnessed $19 million in ERC20 tokens, primarily USDC, making similar moves. This persistent outflow could potentially limit Ethereum’s native DeFi activity and reduce fee revenue over time.
Market Outlook Remains Optimistic
For now, market participants remain focused on the $5,000 psychological level, with the broader cryptocurrency market benefiting from expectations of accommodative monetary policy and renewed institutional interest.
