Daily Crypto Signals: ETH Reaches New Highs While BTC Consolidates Under $115K
Bitcoin price action has cooled over the weekend as Ethereum steals the spotlight with new all-time highs above $4,800, driven by whales
Quick overview
- Bitcoin's price has cooled under $113,000, reflecting a 2% drop in the last 24 hours and nearly 4% over the past week.
- Ethereum has reached new all-time highs above $4,800, driven by whale accumulation and positive sentiment from the Federal Reserve.
- Bitcoin's market dominance has decreased by 5.88% in the last month, indicating a shift of funds towards altcoins like Ethereum.
- Historical patterns suggest caution for Ethereum in September, but current market dynamics may differ due to increased institutional support.
Bitcoin BTC/USD price action has cooled over the weekend as Ethereum ETH/USD steals the spotlight with new all-time highs above $4,800, driven by whale accumulation and dovish Federal Reserve signals. Meanwhile, declining Bitcoin activity metrics suggest the flagship cryptocurrency may be preparing for its next major move as market dynamics shift toward altcoins.
Crypto Market Developments
The cryptocurrency market saw a big change in momentum over the weekend after Federal Reserve Chair Jerome Powell made dovish comments at the Jackson Hole economic summit. Powell’s hints at possible interest rate decreases in September caused a broad rise in risk assets, with Ethereum being the biggest winner. On Friday, the biggest altcoin hit new all-time highs at $4,867. It has been doing well, with a 25% gain since the start of August.
Bitcoin’s dominance has dropped 5.88% in the last 30 days to 58.19%, which means that money is moving from BTC to other cryptocurrencies. There has been a lot of whale activity during this change, with many transactions revealing Bitcoin that had been sitting around for a long time being traded for Ethereum. In August alone, spot Ethereum ETFs had about $2.79 billion in net inflows, while spot Bitcoin ETFs saw about $1.2 billion in net withdrawals. This shows how institutional sentiment is changing.
There are constant changes in the law that affect the market. For example, Telegram founder Pavel Durov is giving updates on his legal case and criticizing the French government’s year-long investigation. Ethereum gaming network Xai has also sued Elon Musk’s xAI firm for trademark infringement, saying that it has caused market confusion and hurt its reputation.
Bitcoin Dips Under $113,000
The price of Bitcoin displays weakness under $113,000, which is a reduction of about 2% in the last 24 hours and nearly 4% in the last seven days. After Powell’s dovish comments on Friday, the main cryptocurrency shot up to about $117,500, but it has since dropped as weekend volatility has calmed down. Technical analysts are keeping a careful eye on the $114,000 level as a crucial weekly closing objective. Some have even pointed out the creation of a CME futures gap that could give short-term direction.
Bitcoin’s price activity is slow right now, but on-chain data suggests that it may be getting ready for its next big rise. The 30-Day Active Supply metric, which counts the number of unique coins that traded at least once in the last month, shows that the market has cooled down a lot. This indicator has historically acted like a thermometer for market interest. When values go down, it usually means that fewer coins are circulating and supply is tight, which means that prices are about to move a lot. The lower activity could mean that investors are unsure after a time of great tension and excitement. This could lay the ground for the next phase of growth when the economy improves.
Ethereum Tests New ATH Above $4,900
Ethereum has been the clear market leader, keeping prices over $4,700 and trying to close strongly above $4,600 every week. BitBull, a well-known trader, said that if ETH closes above this level this week, it will be the greatest weekly close ever for the coin. This might lay the ground for more increases toward $5,200–$5,500 in the coming week. Since its launching price of $3,807 on August 1, the cryptocurrency has gained almost $952. This is a very impressive 25% monthly performance that has gotten a lot of attention in the market.
But historical patterns imply that September may be a time to be careful. CoinGlass data shows that Ether’s price has always gone down in September after going up in August since 2016. There are some big examples in the pattern: in August 2017, the price went up by 92.86%, then in September it went down by 21.65%. In August 2020, the price went up by 25.32%, then in September it went down by 17.08%. Ether has lost an average value 6.42% in the ninth month of the year since September 2016.
Even though there have been problems in the past, the current market is very different from previous cycles. The fact that there are spot Ether ETFs and that more companies are using them is a new structural support that wasn’t there during earlier August surges. BitMine just added another $45 million worth of Ether to its treasury, increasing the firm’s total stack to $7 billion. Companies with crypto treasuries now own more than $13 billion worth of Ether. The fact that institutions are backing Ethereum, together with the fact that whales are buying a lot of it and that ETF flows are changing in favor of Ethereum over Bitcoin, shows that this cycle may not follow the same trends as previous September cycles. The cryptocurrency’s capacity to keep going above important technical levels while more institutions start to use it could be the key to breaking the September curse in 2024.
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