Ethereum News Today: Ethereum Surges 20% to $3,128 as Bitcoin Cools Off

Ethereum has surged by 20% to $3,128, marking a significant increase as Bitcoin experiences a slight cool-off. This shift has sparked discussions about a potential altcoin season, where investors move their capital from Bitcoin to other cryptocurrencies. Analysts like Michaël van de Poppe are highlighting Ethereum’s surge as a key indicator of broader altcoin momentum.

Bitcoin recently reached new highs, surpassing $120,000 before retreating to around $117,000. In contrast, Ethereum has climbed to $3,128, up 20% for the week and 4% in the last 24 hours, reaching its highest level in five months. This reversal in momentum is notable because, while Bitcoin has surged nearly 300% over the past two years, Ethereum has only posted a 60% gain and is still down 8% year-to-date. However, this trend appears to be changing.

Van de Poppe explained that the market is preparing for a classic shift into altcoins. Ethereum’s breakout has historically been one of the first signs that investors are beginning to move capital from Bitcoin into other cryptocurrencies. With Bitcoin’s dominance starting to decline, van de Poppe sees this as a clear indication that an altcoin season could be on the horizon.

Crypto analyst Wolf suggests that Ethereum’s long consolidation below $4,000 isn’t a sign of weakness but rather built-up pressure ready to explode. He compares it to Tesla’s 2019 breakout, warning that once ETH clears $4,000, panic-buying will follow. Meanwhile, Ash Crypto pointed out that ETH is just 9.73% away from breaking out of a massive 4-year accumulation triangle.

A flood of institutional ETH buys adds weight to this theory. Sharplink Gaming just bought $225 million worth of Ethereum, while BitMine pushed its ETH holdings above $500 million. Simultaneously, Ethereum-based funds have seen 19.5% AUM growth over 12 weeks, double that of Bitcoin ETFs in the same period. These moves, along with growing institutional demand, are boosting sentiment.

Ethereum-based investment products are also seeing significant inflows. CoinShares’ James Butterfill reported a 19.5% rise in ETH fund assets under management over the last 12 weeks, outpacing Bitcoin funds, which grew 9.8%. “People are preferring Ethereum over Bitcoin,” Butterfill noted. Notably, open interest in ETH futures just hit a 12-month high, further suggesting that whales are gearing up.

Van de Poppe isn’t the only one pointing to Ethereum as the “kickstarter” of altcoin cycles. With Solana, Chainlink, and other majors also showing signs of bottoming and rotating upward, many traders now expect a wave of capital to flow into altcoins over the next few weeks. If Ethereum continues to hold above $3,100, the stage could be set for a full-blown altcoin breakout, with ETH leading the charge and Bitcoin quietly making room.