Ethereum News Today: Bulls and Bears Battle Over Bitcoin as Trump-Linked Token Crashes

Bitcoin (BTC) and Ethereum (ETH) saw declines on September 5, with BTC dropping below $110,000 after briefly surging above $113,000 and ETH consolidating around $4,375 amid a tight trading range [5]. Analysts noted that the bears maintained control over key support levels, with sellers pulling BTC below $110,000 and ETH failing to break above $4,500 [5]. The market remains in a tug-of-war, with bulls attempting to reassert dominance on BTC and ETH through resistance levels such as $115,304 and $4,500 [5].

Meanwhile, some tokens bucked the trend. World Liberty Financial (WLFI), the token associated with former U.S. President Donald Trump, dropped over 40% since its launch despite a token burn of 47 million units. Whale investors suffered significant losses, with one investor losing $1.6 million in a leveraged position [3]. Despite the sharp decline, 60% of pre-sale participants remained holding the token, showing some lingering support [3]. However, the broader market reaction to WLFI’s volatility highlighted the risks of speculative, narrative-driven assets [3].

Other altcoins exhibited mixed performances. Solana (SOL) found support near its 20-day EMA at $198 but failed to break above $218, limiting its upside potential [5]. BNB also remained locked in a tight range around its 20-day EMA of $848, with both bulls and bears exerting equal pressure [5]. Ripple (XRP) continued to trade within a descending triangle pattern, with analysts watching for a potential breakdown below $2.73 [5]. Cardano (ADA) faced resistance at its 20-day EMA of $0.84, with bears currently holding the upper hand [5].

The broader crypto market’s volatility also impacted digital asset treasury (DAT) companies, whose market-to-net asset value (mNAV) ratios have eroded as Ethereum climbed. BitMine and SharpLink Gaming reported mNAV below 1.0, at 0.99 and 0.89 respectively, signaling growing challenges for raising capital [2]. Analysts warned that shrinking mNAVs could force these companies to issue more shares to raise the same amount of capital, leading to painful dilution [2]. A strong Ethereum rally in Q4 could reverse this trend, but a stall or bearish shift could further compress mNAVs, halting capital inflows [2].

Looking ahead, Bitcoin faces a critical test at $116,000. A breakout above this level could trigger a new leg up toward $140,000, according to Alphractal’s Joao Wedson. Conversely, a failure to maintain above $104,000 risks a pullback to $93,000–$95,000 [5]. With market sentiment split and macroeconomic uncertainty looming, the coming weeks will be pivotal in determining whether the current consolidation turns into a sustained bullish trend or a bearish correction.

Source: [1] The case for ETH going to $12k.. or even $62k. (https://www.reddit.com/r/ethtrader/comments/1n87dkx/the_case_for_eth_going_to_12k_or_even_62k/) [2] Will an Ethereum Run Make It Hard for ETH Treasuries to ... (https://decrypt.co/338266/ethereum-run-eth-treasuries-raise-cash) [3] Trump-linked WLFI's 40% decline causes millions in losses ... (https://cointelegraph.com/news/trump-wlfi-40-decline-millions-losses-crypto-whales-finance-redefined) [4] whales got destroyed on trump's wlfi token - down 40% ... (https://www.reddit.com/r/CryptoMarkets/comments/1n8llv8/whales_got_destroyed_on_trumps_wlfi_token_down_40/) [5] BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui)