Ethereum News Today: Ethereum Surges 21% in Week, Outpacing Bitcoin as Altcoin Season Begins

In recent times, the cryptocurrency market has seen significant shifts, with Ethereum (ETH) experiencing a notable price rally. Ethereum's value increased by 21% over the past week, outperforming Bitcoin (BTC) and attracting considerable attention from the trading community. This surge aligns with the phenomenon known as “altcoin season,” where investors shift their focus from Bitcoin to other cryptocurrencies. The past week has seen a noticeable decline in Bitcoin’s market dominance, indicating a changing landscape within the crypto world.

This shift is driven by changes in market structure, with a growing appetite for altcoins reflecting broader acceptance of higher risks and portfolio diversification. The declining dominance of Bitcoin further underscores this transformation. Ethereum’s recent surge has led to various price forecasts, with some predicting the cryptocurrency could reach valuations up to $4,800. However, these predictions are contingent on the continuation of current market trends and momentum.

The distinct performance disparity between Ethereum and Bitcoin has sparked discussions about the relative importance of specific cryptocurrencies in investment portfolios. Financial experts caution that while market changes present opportunities, they also necessitate a prudent approach during brief surges. The recent rise in Ethereum signals the start of another altcoin season in the market. However, it’s crucial for investors to be cautious and closely monitor market conditions.

Bitcoin’s diminished market share is prompting investors to re-evaluate their approaches to risk and diversification. The relative stagnation of Bitcoin has allowed room for Ethereum and similar assets to thrive, though volatility remains an inherent feature of the crypto environment. Key takeaways from the week include Ethereum’s price surge aligning with a broader altcoin rally, Bitcoin’s declining dominance highlighting market shifts, and experts advising careful monitoring of market volatility.

Ethereum’s recent achievements highlight the volatile yet dynamic nature of the cryptocurrency landscape. As Bitcoin’s traditional dominance wanes, it’s crucial for investors to remain vigilant and informed. By seeking expert insights and observing current trends, investors can devise more strategic approaches to their holdings. Ethereum has recently demonstrated significant momentum, outpacing Bitcoin in terms of price performance. Over the past month, Ethereum's price surged nearly 35%, closing at $3,456.61, while Bitcoin managed an 11.75% gain, reaching $118,615.53. This disparity has sparked renewed debate over Ethereum's potential to reclaim its spot as a market leader, as Bitcoin's dominance shows signs of slipping.

The ETH/BTC ratio, which had been trending lower for months, reflecting Bitcoin’s dominance since 2023, saw a dramatic reversal in July. The ratio bounced from the key support range between 0.015 and 0.020 BTC, a region historically known for accumulation, and now trades at 0.029 BTC. This rebound is significant, as the last time Ethereum made a similar move from this level was during early 2019 and 2020, just before altcoin markets experienced massive growth. With current macro conditions favoring altcoins again, Ethereum’s recovery might not be a coincidence—it could signal a broader shift in the market.

Another strong catalyst for Ethereum’s rise is the surge in institutional interest, reflected in Ethereum ETF inflows. In July alone, Ethereum-based ETFs attracted 79,674 ETH—worth over $256 million. This influx indicates rising trust in Ethereum’s long-term potential—not just as a smart contract platform, but as a long-term investment asset. While Bitcoin ETFs also saw inflows, Ethereum’s proportionate growth in ETF demand is particularly notable, especially given its smaller market cap. These figures show that institutional investors aren’t just focusing on Bitcoin anymore. There’s growing interest in Ethereum’s evolving role in Web3, DeFi, and even AI-linked protocols—areas that are not directly tied to Bitcoin’s value proposition.

Alongside Ethereum’s breakout, Bitcoin’s dominance is shrinking. It fell from 66.04% to 62.47% in July—a 5.43% decline that breaks a key ascending trendline that had supported Bitcoin dominance since late 2023. The daily Relative Strength Index (RSI) for BTC.D is now at 18.02, deep in oversold territory. Historically, such breaks in dominance have preceded altcoin surges. This time may be no different. As capital flows out of Bitcoin, large caps like Ethereum tend to benefit first, followed by smaller altcoins.

Traders are now watching closely for further confirmation of this trend. If Ethereum can hold or build on this momentum, it may continue attracting capital from both retail and institutional segments looking to diversify away from Bitcoin. Ethereum’s July rally has renewed optimism across the board. But analysts remain cautious. To fully confirm a structural shift in Ethereum’s favor, ETH must break past the next critical resistance near 0.038 BTC. This level has rejected multiple rallies in the past. If it succeeds, Ethereum could enter a sustained phase of dominance, especially if ETFs continue attracting capital and Ethereum’s use cases expand. If it fails, the current rally may lose steam, and Bitcoin could reclaim the lead temporarily.

Regardless, the data suggests Ethereum has regained market relevance, and its strong July performance is difficult to ignore. Ethereum’s standout performance in July has reignited the altcoin narrative. With ETF inflows rising, Bitcoin dominance falling, and the ETH/BTC ratio rebounding sharply, Ethereum appears to be leading a shift in market structure. While it’s too early to declare a long-term flip in leadership, the signs are pointing toward a more balanced market, where altcoins—especially Ethereum—take on a more central role. The coming weeks could determine whether this is just a temporary burst or the start of something much bigger.