Ethereum is quoted at a critical level after several days of selling pressure and assembly speculations, with bulls fighting to maintain the impulse as Bitcoin and the wider cryptographic market become bassists. The price action has become a cautious phase, and ETH now faces the challenge of defending the key demand areas that could determine the coming weeks.
Related reading
Despite this setback, Ethereum remains the outstanding artist in the market. Glassnode’s fresh data reveal that during the past month, no Altcoin sector has surpassed ETH, although defi and Layer 2 ecosystems approached. This resilience underlines Ethereum’s domain even in times of broader market weakness, which reinforces its role as the backbone of decentralized finances and blockchain infrastructure.
The trend also suggests that the market is entering what many analysts describe as “Ethereum season”, where ETH leads the capital’s yield and rotation to Altcoins begins to accelerate. With institutions, whales and retail investors who look closely, Ethereum’s capacity to stand firm while others hesitate their strength in the next stage of the cycle.
Ethereum leads the market as capital rotation accelerates
According to Glassnode, Ethereum has established itself as the clear leader in the market during the past month. No Altcoin sector has managed to overcome ETH during this period, with only defi and Layer 2 ecosystems approaching. In particular, most alternative sectors ended the month in decline, reinforcing Ethereum’s relative force in a volatile environment.
This yield indicates a clear change in capital rotation, as the flows begin to move away from Bitcoin and towards Ethereum, marking what many analysts see as the beginning of a new stage in the cycle.
Capital rotation has long been a distinctive seal of Crypto market dynamics. Traditionally, manifestations begin with Bitcoin’s domain before liquidity spreads in Ethereum and then, eventually, smaller altcoins. The latest data show that ETH takes the center of the stage in this process, attracting both institutional interest and the accumulation of whales. This suggests that investors see Ethereum as the next growth engine, backed by solid foundations and expanding adoption in cases of use of defi, NFT and companies.
Even so, the feeling remains divided. Some analysts argue that this cycle is structurally longer, stretched by institutional products such as ETF Spot and greater global adoption, which means that Ethereum could continue to exceed for months. Others are still cautious, warning that the current market weakness could be the early signal of a broader bearish trend.
Regardless of these opposite points of view, Ethereum’s leadership in performance and their ability to overcome almost all alternative sectors highlight their growing importance in the definition of the next stage of the cryptographic market. For many, ETH is establishing the tone where capital flows, and opportunities, are directed below.
Related reading
Eth backed up after an explosive rally
Ethereum quotes around $ 4,366 after a strong weekly decrease of almost 9%, after its recent impulse to new maximums about $ 4,800. The weekly graphic highlights a powerful rally that began earlier this summer, lifting ETH of minimums below $ 2,000 for almost double its value in just a few months. However, the last red candle shows that sellers intervene as the market digests this strong increase.
Despite the correction, ETH remains firmly above its main mobile averages. The 50 -week mobile averages ($ 2,863), 100 weeks ($ 2,819) and 200 weeks ($ 2,446) are tending up a trend, confirming that the long -term structure remains bullish. These levels now serve as strong support layers in the event that deepest retouches occur.
Related reading
In the short term, Ethereum is testing the demand zone of $ 4,200– $ 4,300, which aligns with previous resistance levels since 2022 and early 2024. Maintaining this area would strengthen the case for consolidation before another attempt to break $ 4,800. However, a fault could open the door for a change towards $ 3,800.
Outstanding image of Dall-E, TrainingView graphics
