Ethereum News Today: Bitcoin Holds Above $116,000 as Altcoins Gain 7% in Market Cap

Bitcoin has demonstrated resilience by maintaining support near the $116,000 level, reinforcing its importance as a key price floor after a recent dip to $114,900 [1]. This level coincides with the 50-day simple moving average and a prior demand zone, and has now also crossed above the 21-day exponential moving average—indicating a potential shift in short-term momentum toward the bullish side [2]. The price has since stabilized just above $116,000, with traders closely watching whether this consolidation can serve as a catalyst for a breakout above $118,000 [3].

Analysts have highlighted the significance of a confirmed hold above $116,000 as a potential precursor to increased altcoin activity [4]. Alpha Crypto Signal, a noted voice in the crypto space, described the retest as the “ignition” for altcoin momentum, noting that modest gains among alternative cryptocurrencies in recent days may reflect early positioning ahead of broader rallies [5]. The logic is that once Bitcoin solidifies above $118,000, it may free up capital to flow into altcoins, particularly those with higher volatility profiles, potentially sparking a more widespread market swing [6].

As of the latest report, Bitcoin’s price stood at $118,121, marking a 0.34% rise over the past 24 hours and a 3.93% increase for the week [7]. Daily trading volume reached $33.51 billion, demonstrating continued engagement and liquidity in the market [8]. These figures suggest that while the immediate pressure from sellers has eased, a breakout remains unconfirmed and will require a decisive move beyond $118,000 to validate the next phase of upward momentum [9].

The broader market is also showing signs of optimism. The altcoin segment has experienced a 7% rise in market capitalization, with the total value climbing to $3.96 trillion [10]. Several high-performing tokens, including Ethereum, PENDLE, and MNT, have posted notable gains, with Ethereum recently pushing above $4,000—a level not seen since December 2024 [11]. Analysts have pointed to increased buying pressure and institutional interest in Ethereum as key factors behind its strong performance [12].

However, despite the current optimism, market participants remain cautious. The path to $118,000 is yet to be tested, and a failure to hold the $116,000 level could see attention shift back toward $114,900 [13]. Additionally, macroeconomic developments and the upcoming Federal Reserve policy meeting continue to weigh on the market’s psyche [14].

In conclusion, Bitcoin’s ability to hold above $116,000 and potentially break out above $118,000 will likely dictate the next direction of the market. A successful breakout could unlock broader altcoin activity and reinforce the bullish sentiment in the crypto sector [15].

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[1] https://coinmarketcap.com/community/articles/689941b6071ea518c3f7098d/

[4] https://invezz.com/news/tag/ethereum/

[5] https://twitter.com/alphacryptosign/status/1954360187****93867

[10] https://invezz.com/news/tag/ripple/