Etherium's blockchain to outperform Bitcoin domination

While discussing the cryptocurrency market future, experts agree that Bitcoin and Etherium remain the two main forces among digital assets. Currently, Bitcoin is the digital asset number one, and having 40% of the cryptocurrency market proves its dominance. However, Ethereum becomes a trendsetter on the crypto market and Bitcoin will have to face this fact. Ethereum's main advantage is its multifunctional blockchain, the development of which is directly related to the value of the cryptocurrency.

As of September 14, Ethereum's blockchain is the leader in the use and creation of third-party projects. The altcoin's ecosystem allows multiple projects to gain an advantage, function, and expand faster than their competitors. First of all, this is evident from the numbers: most of the DeFi sector, which is developing by leaps and bounds, is based on Ethereum's blockchain. The rate and number of transactions, fees, and advanced ecosystem make ETH blockchain much more attractive than its competitors, which also affects its price.

It is very easy to trace this connection, for example, the UK accounting firm Ernst & Young, which has integrated the Polygon protocol to scale its own ETH solutions. With this innovation, the firm could significantly increase the speed, number, and security of transactions. In addition, the algorithm provides the ability to transfer financial transactions to the public Ethereum network, which directly affects the quotation of the coin. Furthermore, the company announced new products closely related to the ETH solutions. Other numbers look even more impressive. The total value of blocked assets of the ETH second-tier solution Arbitrum rose to $2.2 billion.

Concluding the obvious advantage of the ether network over the bitcoin, one should mention that the number of the ETH second-tier transactions exceeded bitcoin's one. According to analyst Evan Van Ness, this trend has just begun to take shape and will reach a larger scale in the future. The future of the two cryptocurrencies was summed up by a Standard Chartered expert who confirmed that Etherium's price growth rate will surpass Bitcoin's.

At 5:00 p.m., Etherium is quoted at $3.300 and continues to trade within the descending parallel channel. The hourly chart is preparing a rising trend, which will be triggered shortly. If it is successfully overcome, the asset may reach $3.400 and even $3.500. However, the technical indicators of the coin point to the strong pressure on the price, so this is unlikely to happen.

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The four-hour chart shows a less miserable picture and there are clear signals for the consolidation period to continue. The RSI is moving around the level of 50 and the MACD and stochastic are showing weak signs of upward movement. A bearish divergence in the MACD is likely and that may be a sign for a further downside trend.

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The daily chart shows the coin's recovery from the recent collapse. The main indicators are moving sideways, hinting at a period of accumulation. The on-chain charts show a similar situation, where the number of unique addresses gained an upward trend, but the total number of transactions fell by 9%. Accordingly, Etherium may continue to recover from the fall, and the fluctuations within the descending parallel channel are likely to continue for some time.

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The material has been provided by InstaForex Company - www.instaforex.com

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