Ethereum News Today: Ethereum's Rise Sparks Shift in Power From Bitcoin to Altcoins

The Altseason Index has reached its highest point since the beginning of 2025, signaling a growing shift in market sentiment toward alternative cryptocurrencies. According to data from mid-August, the index, which tracks the performance of the top 100 cryptocurrencies excluding stablecoins and wrapped tokens, indicates that 75% or more of these coins have outperformed Bitcoin over the past 90 days [3]. This marks a significant departure from traditional “Bitcoin Season” patterns, where the leading cryptocurrency typically dominates in terms of market share and investor attention.

Ethereum, a key player in the altcoin space, reached a record high of $4,946.90 on August 24, 2025, surpassing its previous all-time high set in November 2021 [1]. The price breakout was attributed to declining exchange reserves, which reduced the immediately available supply of ETH and led to increased demand. Analysts such as Crypto Rover noted that shrinking liquidity on centralized exchanges can create a “supply shock,” where buyers are forced to pay higher prices to acquire coins, further fueling upward momentum [1].

The relative strength of Ethereum compared to Bitcoin has been a notable trend in 2025. Analyst Miles Deutsher described the current market dynamics as “BTC is exhausted, ETH isn’t,” highlighting the weakening momentum in Bitcoin’s price action while noting sustained strength in Ether [1]. This shift in leadership is supported by broader market data, which shows that institutional interest and digital asset treasury companies have increasingly shifted their focus to Ethereum-based assets and ETFs.

Despite Ethereum’s strong performance, traders remain cautious about short-term volatility. Michaël van de Poppe, a market analyst, noted that large weekly price movements often retrace in the days following a breakout, particularly when liquidity levels return to normal [1]. The weekend's thin trading volume may have exaggerated price movements, and early-week corrections are not uncommon as markets reassess their positions.

The Altseason Index has also been supported by broader macroeconomic and technological factors. Ethereum’s smart contract infrastructure has positioned it as a preferred platform for high-value blockchain transactions and decentralized finance (DeFi) applications [2]. Additionally, the anticipated passage of the GENIUS Act is expected to further solidify Ethereum’s role in the stablecoin ecosystem, increasing its utility and long-term demand.

As the index continues to rise, traders and investors are using it as a strategic tool to adjust their portfolios. The Altcoin Season Index, available on platforms like Bitget, offers real-time insights into market dynamics, helping users identify opportunities in altcoin investments [3]. With Ethereum leading the charge and a growing number of altcoins outperforming Bitcoin, the cryptocurrency market appears to be entering a more diverse and dynamic phase. This evolution could redefine the traditional dominance of Bitcoin, creating new opportunities for investors who are able to navigate the changing landscape.

Source:

[1] As ETH Breaks Above USD4,900, Analyst Sums Up Crypto Market: BTC Is Exhausted, ETH Isn’t (https://www.coindesk.com/markets/2025/08/24/as-eth-breaks-above-usd4-900-analyst-sums-up-crypto-market-btc-is-exhausted-eth-isn-t)

[2] Ether, the number two crypto, closes on bitcoin (https://www.axios.com/2025/08/24/ether-all-time-high)

[3] Altcoin Season Index | Altcoin Dominance Chart (https://www.bitget.site/price/altcoin-season-index)