Ethereum News Today: Ethereum's Resurgence: A Bullish Reset in the Making

Ethereum has regained critical support at $4,200, with buyers maintaining strong momentum amid a broader market rebound. The cryptocurrency’s recent price action suggests a potential reversal, with key technical indicators and market sentiment aligning in favor of a bullish continuation. According to the Fear & Greed Index, which dropped to 44, the market appears to be entering a period of caution—often seen as a precursor to a bullish reset, particularly in bull cycles. This trend coincided with a 6% rally in Ethereum’s price, which closed above the daily TBO Cloud and broke through overhead resistance on ETH/BTC pairs, signaling renewed buying interest.

Ethereum’s price surge contributed to a broader market rally, as capital rotated back into risk-on assets. Stablecoin dominance fell by 2.60%, while Ethereum’s dominance over Bitcoin increased by 3.77% in a single day, reflecting a shift in investor allocation. This was supported by strong volume and rising RSI momentum, indicating a consolidation of bullish sentiment. In contrast, Bitcoin’s dominance continued to trend downward, reinforcing bearish momentum in BTC. The broader crypto market also saw positive developments, with the top 10 dominance and other altcoin metrics responding favorably to Ethereum’s strength.

However, Ethereum’s price trajectory was not without volatility. On August 21, Ethereum experienced a 3% drop, despite $287 million in ETF inflows. This decline came after Ethereum tested overhead liquidity, triggering a pullback toward $4,200. The 4-hour chart displayed a bearish structure, with the local high at $4,388 remaining unbroken as a key resistance level. On-balance volume (OBV) also failed to establish new highs, reflecting weak buying pressure. While the MACD showed a bullish crossover below the zero line, indicating fading bearish momentum, the market remained in a cautious phase.

JPMorgan has expressed optimism about Ethereum’s long-term potential, labeling it as “poised for meteoric growth.” The firm highlighted Ethereum’s role as the dominant smart contract platform, with over $138 billion worth of stablecoins issued as ERC-20 tokens on its blockchain. This positions Ethereum at the center of the growing stablecoin ecosystem, which JPMorgan predicts could reach $750 billion by the end of 2026. The firm also pointed to Ethereum’s competitive advantages, including a robust developer base and institutional adoption, as key drivers of its outperformance over Bitcoin.

Looking ahead, Ethereum’s price action and market dynamics suggest a pivotal period for the asset. With Ethereum ETF inflows reaching record levels and broader adoption of the blockchain by corporate treasuries and financial institutions, the platform appears well-positioned for continued growth. While short-term volatility remains a concern, the overall technical and fundamental indicators point to a resilient market, with Ethereum leading the charge in the altcoin season.

Source: [1] Ethereum leads the charge as crypto market eyes reversal (https://www.kitco.com/opinion/2025-08-21/ethereum-leads-charge-crypto-market-eyes-reversal) [2] Here's why Ethereum dropped 3% despite $287M ETF inflows (https://eng.ambcrypto.com/heres-why-ethereum-dropped-3-despite-287m-etf-inflows/) [3] JPMorgan Says Ethereum Is Poised for 'Meteoric' Growth (https://finance.yahoo.com/news/jpmorgan-says-ethereum-poised-meteoric-201517239.html) [4] Ethereum Price, ETH Price, Live Charts, and Marketcap (https://www.coinbase.com/price/ethereum)