Ethereum News Today: Bitcoin's Downturn May Signal a Bullish Turn, as Ethereum Gains Institutional Momentum

Bitcoin and Ethereum continue to dominate the cryptocurrency market, with both assets showing notable shifts in September 2025. Bitcoin, which reached a multi-month high of $124,500 earlier in the month, has experienced a slight pullback to $109,290 at the time of writing. Analysts remain divided on its near-term trajectory, but several technical and macroeconomic indicators suggest a bullish outlook. The $105,000–$110,000 price zone, which previously acted as a resistance, has now transformed into a critical support level. This shift, along with a hidden bullish divergence in the RSI, signals that buyers may be stepping in despite the recent decline in price [1].

Historical patterns also provide a nuanced view of Bitcoin’s performance. September has traditionally been a weak month for the asset, with an average return of −3.80% since 2013. However, 2025 is shaping up to be an exception. Analysts such as Rekt Fencer have pointed to the 2017 pattern, where Bitcoin dropped sharply in late August but then reversed higher after retesting a key support zone. Given the current market conditions, many believe a similar rebound is on the horizon [1]. The timing of potential moves could be further influenced by the weakening U.S. dollar. With the dollar index (DXY) seeing a 52-week correlation of −0.25 to Bitcoin, traders are optimistic that a continued slide in the dollar could further bolster crypto prices [1].

Ethereum, meanwhile, has posted a mixed performance. While it closed in the green for the day with a 0.22% increase, it has seen a 0.86% decline over the past week. Despite this, Ethereum’s market dominance has grown significantly, with its market cap reaching $500 billion in late August 2025. This milestone, according to experts like Joseph Chalom of Sharplink, highlights Ethereum’s growing role as a programmable and decentralized infrastructure. Unlike Bitcoin, which functions primarily as digital gold, Ethereum supports a wide array of decentralized applications (dApps), including DeFi platforms and tokenized assets [4]. Institutional investors and whales have been increasingly shifting their capital to Ethereum, further reinforcing its long-term potential [4].

The broader market dynamics are also supporting Ethereum’s ascent. In August alone, Ethereum-based funds attracted $3.95 billion in inflows, outpacing Bitcoin’s performance [3]. Additionally, Ethereum’s circulating supply is at a nine-year low, signaling increased confidence from long-term holders. As the network approaches a potential $5,000 price level, many analysts believe it is setting the stage for a breakout if macroeconomic conditions continue to favor risk assets [3]. Moreover, Ethereum’s role in tokenization and real-world asset (RWA) adoption is gaining momentum. A recent $700 million Ethereum-based digital bond issued by a China state company in Hong Kong marks a significant step in bridging traditional finance and blockchain technology [3].

The market has also seen a shift in whale activity, with a major Bitcoin whale offloading $3.4 billion worth of BTC for Ethereum. This move, which has driven Ethereum gas fees to over 100 gwei, indicates a strategic reallocation of capital within the crypto space. While this may create short-term volatility, it also underscores a growing consensus among institutional players that Ethereum could offer more value in the post-Bitcoin era. Furthermore, Ethereum’s ecosystem is expanding beyond its core functionality. The recent integration of Ethereum Virtual Machine (EVM) features into the BRC-20 token protocol for Bitcoin and the introduction of a new Ethereum Foundation initiative aimed at improving L2 interop suggest a broader effort to enhance Ethereum’s utility [3].

As both Bitcoin and Ethereum continue to navigate September’s historically challenging market conditions, the broader crypto ecosystem appears to be gaining momentum. With a weaker dollar, favorable macroeconomic forecasts, and growing institutional adoption, the stage is set for a potential breakout in the coming months. Whether these trends continue to favor Bitcoin, Ethereum, or a broader altcoin rally will depend on how global markets react to the next wave of macroeconomic data and regulatory developments.

Source:

[1] Will Bitcoin price drop in September? (https://cointelegraph.com/news/will-bitcoin-price-drop-in-september)

[2] Skepticism will dog Bitcoin even at $10M price, says analyst (https://cointelegraph.com/news/bitcoin-price-skepticism-continue-btc-millions-analyst)

[3] Ethereum Price, ETH Price, Live Charts, and Marketcap (https://www.coinbase.com/en-gb/price/ethereum)

[4] Ethereum's Historic Milestone: A Deep Dive into Its $500 Billion Market Cap (https://fintech.tv/ethereums-historic-milestone-a-deep-dive-into-its-500-billion-market-cap/)