Ethereum News Today: Ethereum price surges 14% as altcoin season gains momentum

Ethereum's price has surged past $4,670, marking its highest level in almost 11 months and signaling the potential onset of a broader altcoin rally [1]. The upward momentum has triggered a wave of optimism, with many observers suggesting that the second phase of the altcoin cycle is underway. This surge has been driven by factors such as liquidations, treasury buying, and ETF inflows, which have collectively supported the upward trajectory of the asset [1].

The shift in capital from Bitcoin to Ethereum has also been a notable trend. The ETH/BTC trading pair has climbed 14% since May, indicating that investors are rotating their holdings in anticipation of further gains [1]. CoinGecko reports that Ethereum's market dominance has increased from 17.5% in May to 20.8% in August, a sign of strong capital reallocation within the crypto space [1]. This pattern is characteristic of an “altseason,” where investor interest moves from the dominant asset to alternative cryptocurrencies.

The Altcoin Season Index has also shown a significant improvement, rising to around 45 out of 50, as the number of top altcoins outperforming Bitcoin has increased [1]. While the index is still below the 75 threshold typically associated with a full altseason, the current pace of growth is faster than in previous cycles, suggesting a more rapid and robust market transition [1]. Over the past 90 days, daily trading volume for ETH has risen by 38%, reaching $22.4 billion, while open interest in ETH derivatives hit a new high of $12.1 billion since March 2024 [1].

Macroeconomic conditions appear to be playing a supportive role in the altcoin rally. U.S. economic indicators such as softer job creation and cooling inflation have raised expectations for Federal Reserve rate cuts later in the year. Easing monetary policy is often linked to increased liquidity and higher risk appetite, both of which have historically benefited altcoins [1]. Moreover, the global M2 money supply is expanding at its fastest rate since early 2021, a period marked by one of the strongest altseasons in history [1].

Institutional activity has also been a key factor. Large wallet holders have moved capital from Bitcoin to Ethereum, as well as to layer-1 blockchains like Solana (SOL) and infrastructure tokens such as Chainlink (LINK) [1]. Unlike the retail-driven dynamics seen in 2021, this rally appears to be guided by professional capital targeting high-beta assets with compelling narratives. Ethereum ETFs have seen a record $1.02 billion in single-day inflows, with over $14 billion in corporate treasury commitments reinforcing the asset’s institutional appeal [2].

Despite a significant Ethereum Foundation ETH sale totaling nearly $13 million over two transactions in DAI, the price has continued to rise. The Foundation has stated that these sales are part of its broader strategy to fund ecosystem development and operational expenses [2]. However, the timing of these transactions amid a strong price rally has drawn attention from the community, with some questioning whether they may influence market sentiment [2].

The broader altcoin market has responded positively to Ethereum’s breakout. Traders are now speculating on whether the token can retest its all-time high near $4,800, a move that could further validate the arrival of altcoin season [2]. The Ethereum Fear and Greed Index, a widely followed indicator of market psychology, reflects a shift toward optimism, with bullish momentum gaining traction [3]. Discussions are already emerging about which altcoins might benefit most from the ongoing rally, as traders begin to explore diversification opportunities beyond Bitcoin [4].

While the current environment is favorable, market participants are advised to remain cautious. Resistance levels and volatility remain key concerns, especially as the market tests new highs. The confluence of strong technical indicators, institutional demand, and macroeconomic tailwinds suggests that the altcoin season is not just a possibility—it may already be here [1].

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Sources:

[1] title: Ethereum's surge signals altcoin season is underway

url: https://crypto.news/ethereum-price-altcoin-season-underway-coingecko-2025/

[2] title: Ethereum Foundation dumps $13m worth of ETH amid ...

url: https://crypto.news/ethereum-foundation-dumps-13m-worth-of-eth-amid-price-pump/

[3] title: Ethereum Fear and Greed Index | Multiple Timeframes

url: https://cfgi.io/ethereum-fear-greed-index/

[4] title: Pi Network vs. Cardano: Which One Will Reach $5 First?

url: https://coindoo.com/pi-network-vs-cardano-which-one-will-reach-5-first/