Altcoins

Ethereum (ETH), which rebounded as risk appetite returned following remarks by Fed Chair Jerome Powell at Jackson Hole, moved into a consolidation phase after setting a fresh record high as profit-taking emerged. Market attention is shifting to large-cap “blue-chip” altcoins as well as tokens in the Ethereum ecosystem.

Ethereum, the bellwether altcoin, was trading at $4,558, down 1.08% from the previous day as of 2:56 p.m. on the 28th on Binance’s Tether (USDT) market (6.35 million won on Upbit). The ETH/BTC ratio climbed to 0.04057, reflecting its independent uptrend.

While Bitcoin (BTC) has posted a modest rebound recently, the broader weak tone persists, limiting attempts by most altcoins to push higher. Overall upside potential for the market appears somewhat constrained.

On the day, Bitcoin dominance (BTC Dominance, Bitcoin’s share of total crypto market capitalization) edged up to 58.22%, a slight rebound since the 25th. The rise in dominance alongside higher Bitcoin prices suggests more funds flowed into Bitcoin than into most altcoins.

"Ethereum sees institutional inflows and whale accumulation…further rebound possible"

The market has recently been seeing signs of funds moving quickly from Bitcoin to Ethereum. U.S. crypto media outlet CryptoRank reported on the 28th that “some big-money whales are changing strategy, selling Bitcoin and quietly accumulating hundreds of millions of dollars’ worth of Ethereum.” In its research report, crypto asset manager CoinShares highlighted Ethereum’s strength, saying that “Ethereum-based investment products recorded net inflows totaling $2.5 billion for the month, while Bitcoin products saw net outflows of $1.0 billion.”

Crypto data analytics firm Kaiko said in a research report on the 25th that “Ethereum, supported by spot demand, has surpassed its previous all-time high set in 2021,” adding that “even after a short-term pullback, liquidity and trading volume remain solid.” Nasdaq-listed companies such as SharpLink Gaming are also supporting the uptrend by making additional Ethereum purchases through a “Digital Asset Treasury” (DAT) strategy.

Whales continue to buy Ethereum. On the 25th, on-chain analytics firm Santiment said, “In August, the number of Ethereum whale (large holder) wallets has steadily increased, laying the groundwork for a further market rebound.” This month, the number of wallets holding at least 10,000 ETH rose by 48 to 1,275.

Still, there are concerns that short-term volatility could increase as coins previously locked in Ethereum staking are gradually released. Crypto analyst Willy Woo recently appeared on the Swissblock podcast and cautioned that “the Ethereum-led bull trend is continuing, but unstaked supply will gradually be released into the market and could act as selling pressure,” adding that “short-term volatility could widen as investors cash out.”

"Ethereum faces $4,630 resistance…September volatility alert"

Analysts are leaving room for a near-term pullback in Ethereum while expecting the uptrend to continue over the medium to long term.

Ayush Jindal, a researcher at NewsBTC, said, “If Ethereum breaks through the $4,630 and $4,720 resistance levels in the short term, it could attempt a move to $4,840 and further to $4,950–$5,000.” He added, “If it fails to break above $4,630, it could retest support at $4,450 and $4,320.”

Rakesh Upadhyay, a researcher at Cointelegraph, said, “If Ethereum rebounds around $4,349, it could retest $5,000 and potentially rise to $5,500,” but added that “if it fails to break out, there is a risk of sliding to support at $4,060.” Crypto analytics platform Matrixport similarly assessed that “Ethereum’s price is likely to fluctuate within the $4,355–$4,958 range.”

Crypto analyst Benjamin Cowen said on his YouTube channel that “Ethereum is likely to see a pullback in September,” noting that “in September 2017 and September 2021—both following U.S. presidential elections—there were precedents of declines of 48% and 34%, respectively.” He said, “Since Ethereum broke above its peak in August, if it digests a seasonal pullback in September, it could lead to an explosive rebound in October.”

He added, “If short-term overheating in Ethereum intensifies and it reaches $6,000 right away, that could be it. Upside after that may be limited.” With Cowen having accurately pinpointed Ethereum’s low for the year at around $1,600, the market is also paying close attention to this latest outlook.

"Clear ‘altcoin season’ signals still lacking"

Some are leaning toward the possibility of further gains in blue-chip altcoins, including Ethereum ecosystem tokens, but others say signals are still insufficient for a clear “altcoin season.”

Alex Kuptsikevich, a market analyst at FxPro, said, “Recently, whenever Bitcoin slipped below the $110,000 level, buying interest flowed in and drove rebounds, which can be interpreted as a sign that investor psychology of viewing pullbacks as opportunities remains valid.” He added, “Against this backdrop, major altcoins such as Ethereum, XRP, Solana and Dogecoin are showing relative strength.”

There is also analysis that the market could remain Ethereum-centric for some time. Crypto research firm Swissblock said on its podcast, “Ethereum is regaining market leadership for the first time since 2021. The market’s center of gravity is shifting toward Ethereum.” It added, “The flow that used to run ‘Bitcoin → altcoins → stablecoins’ is now concentrating on Ethereum.” Cowen has previously emphasized that “this is not altcoin season—it’s Ethereum season.”

Expectations are also spreading for tokens related to the Ethereum ecosystem. Crypto strategist Michaël van de Poppe said recently on his YouTube channel, “During this (September) correction phase, we should pay attention to Ethereum ecosystem altcoins,” citing the possibility of sharp gains in related tokens such as Optimism (OP), Arbitrum (ARB), Ethena (ENA), GIZA (GIZA) and Rocket Pool (RPL) amid Ethereum’s surge.

However, there is also analysis that it is still difficult to expect an overall “altcoin season.” Altcoin Vector said on X (formerly Twitter) that “Bitcoin’s recent strength is not clear, and altcoin momentum is only 8%,” adding that “the overall framework for an altcoin season is forming, but signals that can confirm a bull market are still lacking.” It also said, “Even amid Bitcoin weakness and uncertainty, altcoins have already gone through a correction and entered an ‘Accumulation Zone,’ which could be an opportunity to prepare for further upside.”

Meanwhile, expectations for a rotation market within the year remain intact. QCP Capital, a crypto trading firm and market maker, said, “Bitcoin dominance has recently fallen from 60% to 57%,” adding, “This is still high compared with below 50% during the 2021 bull market, but expectations that an Ethereum staking ETF will be approved this year mean optimism for an altcoin rotation market continues.”