Ethereum News Today: Ethereum Surges 51% on Altcoin Shift as Bitcoin Dominance Falls to 59.3%

Ethereum’s recent performance has marked a pivotal moment in the cryptocurrency landscape, as Bitcoin’s market dominance continues to wane. As of August 4, 2025, Bitcoin’s dominance has fallen to 59.3%, signaling a potential shift in investor preference toward alternative cryptocurrencies, particularly Ethereum [1]. This decline is mirrored by a significant increase in Ethereum’s daily active addresses, which have exceeded 500,000, reflecting heightened network activity and usage [1]. Analysts have noted early signs of a structural change in the crypto market, especially in mid-2025, as Bitcoin’s grip weakens and large-cap altcoins, including Ethereum, rally [3].

Ethereum’s price surged 51% in July, outpacing Bitcoin and leading a broader altcoin rally driven by renewed risk appetite and corporate accumulation [1]. Corporate holdings of Ethereum jumped by 127% during the same period, reaching 2.7 million ETH. Major firms such as Bitmine and Sharplink have now surpassed the Ethereum Foundation’s own reserves, underscoring the institutional interest in the asset [1]. This trend is not only reshaping Ethereum’s role in the market but also contributing to a broader reallocation of capital away from Bitcoin.

The regulatory environment has also played a key role in Ethereum’s resurgence. Favorable developments, including the proposed GENIUS Act for stablecoins, have boosted market sentiment and encouraged capital flows into assets like Ethereum, XRP, DOGE, and SUI [1]. The GENIUS Act is seen as a step toward clearer regulatory frameworks, which could further enhance Ethereum’s appeal among both retail and institutional investors.

Ethereum’s price currently hovers near $3,603.62, supported by a critical level at $3,356 and with a potential breakout target at $3,785 [6]. The ETH/BTC pair has also formed a bull flag pattern on the daily chart, suggesting a resumption of Ethereum’s upward trend following a brief consolidation [7]. This technical configuration has drawn attention from traders who see potential for continued momentum.

The broader market sentiment has shifted back to greed, as reflected in the Fear & Greed Index, which has recovered from a recent neutral phase [5]. This optimism, combined with Ethereum’s growing utility in decentralized finance (DeFi) and its strong fundamentals, has further underpinned its recent performance. Some analysts have proposed scenarios for a gradual rotation of capital from Bitcoin to altcoins beginning in mid-2025 [4], aligning with the current trajectory of Ethereum’s price and activity.

Ethereum’s recent consolidation has shown a balanced taker buy/sell ratio, indicating a market in equilibrium [8]. This suggests that while there is no immediate directional bias, the network remains in a state of cautious buildup. The $3,600 level is now a key threshold for Ethereum, with investors watching closely to see whether the recent gains will be sustained [9].

Taken together, these developments highlight a potential structural shift in the cryptocurrency market. While Bitcoin still commands a dominant share of nearly 60%, the rising activity and price action in Ethereum suggest that the market is evolving. Investors are beginning to diversify their exposure, and altcoins are becoming more prominent in the broader crypto narrative. The emergence of Ethereum as a strong alternative to Bitcoin underscores the dynamic and increasingly competitive nature of the digital asset space.

Source:

[1] Bitcoin News Today: Bitcoin Dominance Near 61.83% Signals Potential Altcoin Shift – https://www.ainvest.com/news/bitcoin-news-today-bitcoin-dominance-61-83-signals-potential-altcoin-shift-2508/

[3] When Will Alt Season Come? What the Experts Are Saying – https://www.livebitcoinnews.com/when-will-alt-season-come-what-the-experts-are-saying/

[4] Bitcoin News Today: Analysts Eye Mid-2025 for Potential Alt Season – https://www.ainvest.com/news/bitcoin-news-today-analysts-eye-mid-2025-potential-alt-season-shifting-bitcoin-dominance-2508/

[5] Bitcoin Sentiment Shifts Back to Greed as Price Recovers – https://thecurrencyanalytics.com/bitcoin/bitcoin-sentiment-turns-greedy-again-as-market-recovers-from-brief-neutral-phase-189019

[6] Imminent Loss for Ethereum Bears? $ETH Recovers as – https://www.mitrade.com/insights/news/live-news/article-3-1013211-20250805

[7] BTC Traders Bet on Sub-$100K Slide – https://www.coindesk.com/daybook-us/2025/08/06/bitcoin-traders-bet-on-sub-usd100k-slide-crypto-daybook-americas

[8] Ethereum Consolidation Deepens As Taker Buy/Sell Ratio – https://www.mitrade.com/insights/news/live-news/article-3-1014122-20250806

[9] China's Hidden Economic Play Could Skyrocket Bitcoin to – https://www.interactivecrypto.com/chinas-hidden-economic-play-could-skyrocket-bitcoin-to-150000what-you-need-to-know