Bitcoin Hits $118,000 All-Time High, Ethereum Surges 42%

Bitcoin (BTC USD) reached a new all-time high of nearly $118,000 on July 11, showing no signs of slowing down due to growing institutional support. Meanwhile, Ethereum (ETH) briefly surpassed $3,000 on the same day, pushing the ETH/BTC pair towards a crucial resistance level. The daily BTC/USD chart continues to favor bulls, with higher lows forming since late June and spot ETF inflows providing fresh liquidity. However, with BTC dominance slightly decreasing and spot Ethereum ETFs attracting over $1 billion in inflows in July alone, traders are debating whether altcoins will lead the next phase of the 2025 bull run.

The ETH/BTC pair has been in decline for the past few years, falling from September 2022 highs of around 0.08 BTC to a record low near 0.018 BTC until April 2025. It recently rebounded nearly 42% from its April low and has been testing the resistance level around 0.026 BTC. The pair has jumped above its short-term EMAs (20-day and 50-day), indicating improving momentum. However, the 200-day EMA and the horizontal resistance around 0.026 BTC remain unbroken, highlighting their significance. A decisive daily close above 0.026 BTC would mark the first breach of the 200-day EMA in nearly a year, an event that in past cycles has often preceded relative outperformance of ETH versus BTC.

Bitcoin’s dominance is starting to ease as its recent surge to new highs cools off, creating potential room for Ethereum and other altcoins to run. Institutional capital is rotating into ETH, as its spot ETFs saw substantial net inflows of over $2 billion in just the past two months. If the ETH/BTC pair can finally clear the 0.026 barrier with conviction, it could ignite a period of ETH-led outperformance, potentially kicking off a mini altseason.

Investor interest in Bitcoin price prediction has surged alongside its latest rally, indicating that retail traders are back in full swing. Popular Web3 commentators are expecting an altseason to unfold. Michael van de Poppe’s chart shows Bitcoin’s breakout above $110,500 sweeping liquidity and catapulting it near an all-time high of $118,000. Van de Poppe now expects Bitcoin (BTC USD) to consolidate after this move. His chart notes how a prior break above $106,500 led to a quick rally toward $108,000, showing how clearing key liquidity levels can rapidly accelerate gains. With $110,000 likely flipped to support, some long-term holders are taking profits – a behavior that historically preceded only shallow pullbacks. But a calmer Bitcoin could turn traders’ focus to altcoins. Historically, when BTC cools, capital rotates into other coins, and that pattern appears to be emerging now. Ethereum’s market dominance is up nearly 14% over the past two weeks. Traders should wait for a close above the dominance level to cross above its 200-day EMA (at around 9.95%) to truly gauge the trend shift. So, a true altseason would still require a bigger BTC dominance drop and a confirmed ETH/BTC breakout.

If there is a potential ETH/BTC bullish flip, traders could adjust their portfolios by increasing Ethereum exposure. This would involve increasing ETH’s weight while still keeping Bitcoin as the main anchor for stability. Whenever Ethereum outperforms Bitcoin (BTC USD), money often spills over into other altcoins. That’s why picking a few high-utility altcoins, like DeFi tokens or Layer-2 projects, can lift overall returns in that upbeat mood. But the key is timing: investors should wait until ETH/BTC (and Ethereum’s market cap dominance) closes above its 200-day moving average. That technical green light will help confirm the trend reversal before you decide to rebalance.