ETH Dominance Stalls at 20-Month SMA as Consolidation Extends

Ethereum’s market dominance keeps running into the same wall—the 20-month simple moving average. Month after month, the price action stalls right at this level without pushing through. Recent candles show ETH dominance hanging around in the low-to-mid teens percentage range, stabilizing near resistance but not breaking it cleanly.

The monthly chart shows Bollinger Bands staying pretty tight, which usually means consolidation rather than explosive moves. There’s upward momentum in play, but it’s just not strong enough yet to crack through this higher-timeframe resistance. The pattern we’re seeing is classic sideways action at a critical technical level.

As one analyst noted, “Flattening the 20-month SMA and flipping it into support is expected to be a gradual process” that could take roughly two to five months. That timeline makes sense when you’re dealing with monthly structures—they don’t turn on a dime. During this stretch, expect ETH dominance to grind sideways with occasional dips, which tends to shake out short-term traders while longer-term positions quietly build underneath resistance.

This matters beyond just Ethereum itself. ETH dominance serves as a key gauge for how capital flows through the crypto ecosystem. When it gets stuck at a major monthly moving average like this, it tells us that shifts in market leadership are happening slowly, not suddenly. Whether dominance eventually breaks higher or stays range-bound will shape expectations around capital rotation for months ahead.

My Take: The 2-5 month consolidation timeline feels realistic given how monthly structures typically behave. Markets don’t respect our urgency—they move at their own pace. Patient positioning here makes more sense than chasing breakouts that haven’t materialized yet.

Source: Cantonese Cat