Bitcoin News Today: Ethereum Rebounds to $3,700 on $533.9M ETF Inflows as Bitcoin’s Dominance Falls 8.5%

Ethereum’s price rebounded to $3,700, halting recent declines in altcoins, as spot Ether ETFs recorded a net inflow of $533.9 million on Tuesday—the fourth-largest on record—amid a broader 13-day streak of inflows totaling $4.0 billion [6]. This surge occurred despite Bitcoin ETFs experiencing net exits for three consecutive days, highlighting renewed institutional interest in Ethereum. Analysts attributed the recovery to regulatory developments and growing adoption, with Ethereum’s market share rising to 11.8% as investors rotated capital away from Bitcoin [1].

The ETHBTC pair’s movement has become critical for altcoins, with Ethereum testing the 0.0299 support level and rebounding. Technical analysts, including DaanCrypto, predict a potential breakout within one to two weeks if resistance at 0.033BTC is surpassed, which could drive the price toward 0.037BTC and eventually the 0.04 peak. However, a failed attempt to test the resistance could trigger over 10% losses in altcoins [6]. Meanwhile, Bitcoin’s price has stabilized near $118,000, maintaining its role as a “flight to safety” asset amid a 75% decline in altcoins. Bitcoin’s dominance dropped 8.5% to below 59%, coinciding with Ethereum’s market share gains [6].

Institutional activity and U.S. crypto-friendly legislation have fueled Ethereum’s 65% surge in a month and 160% increase since an unspecified earlier period, according to Matt Hougan of Bitwise. Swissblock analysts described the current phase as a “decision point” for altseason dynamics, emphasizing that a weakening Bitcoin dominance is necessary for a robust altcoin rally [1]. The Altseason Index, a gauge of capital rotation, reached 51 on July 21, signaling potential momentum for altcoins if Bitcoin’s relative strength continues to wane [6].

Validator behavior on Ethereum has shifted amid the price surge, with substantial ETH queued for exit and extended withdrawal times reported [6]. Despite these dynamics, the total crypto market capitalization hit a weekly low of $3.95 trillion, with Bitcoin’s stability contrasting against broader market declines. Analysts remain divided on Ethereum’s trajectory: some argue the gains are driven by speculative fervor, while others point to structural resilience. FX Leaders highlighted institutional adoption and favorable legislation as key catalysts, while critics caution against overreliance on speculative hype [6].

Market participants are now watching Bitcoin’s ability to break out of its consolidation phase. A sustained rally could reignite altcoin activity, but further consolidation is likely before a definitive trend emerges. With Ethereum’s price surging and market share expanding, the cryptocurrency has positioned itself as a focal point for investor optimism amid lingering uncertainties [6].

Sources:

[1] [Bitcoin's Demise Is Inevitable](https://seekingalpha.com/article/4802962-bitcoin-demise-is-inevitable)

[6] [Altseason Indicators Start Flashing Amid Rotation of Capital: Analysts](https://cryptoadventure.com/altseason-indicators-start-flashing-amid-rotation-of-capital-analysts/)