Ethereum News Today: Market Crossroads: Bitcoin's $116K Hurdle Decides Bull or Bear Future

Bitcoin’s price movement has sparked renewed interest in the cryptocurrency market, with recent fluctuations suggesting potential for both bullish and bearish scenarios. On Friday, BTC surged above $113,000, though strong selling pressure at higher levels indicated market uncertainty. The price briefly surpassed the 20-day EMA ($112,093), a key indicator for short-term momentum, but failed to maintain the upward trajectory. Analysts from Glassnode noted that $116,000 is a critical resistance level, with a successful breakout potentially signaling the start of a new uptrend. Conversely, a breakdown below $104,000 could lead to a decline toward $93,000 to $95,000.

Alphractal’s Joao Wedson provided a broader perspective, highlighting a possible fractal cycle ending in October. He projected a potential move to $140,000 for BTC before a potential bearish shift in 2026, where the price could fall below $50,000. Wedson also pointed to increased demand from exchange-traded funds and institutional investors as a key factor in BTC’s current trajectory. This trend may indicate a structural shift in the market, though it remains to be seen whether it confirms the end of a four-year cycle.

Ethereum (ETH) is also showing signs of consolidation, with its price fluctuating within a range of $4,250 to $4,500. The 20-day EMA and RSI are currently neutral, with no clear advantage for either bulls or bears. If ETH breaks above $4,500, it could signal the resumption of bullish momentum, with a potential target of $4,664 before facing resistance at $4,957. Conversely, a breakdown below $4,250 could pull the price down to $4,094, where strong defensive support is expected. A failure to hold that level might push ETH toward $3,745.

Tom Lee, Fundstrat’s Chief Investment Officer, proposed a more ambitious ETH price forecast based on its ratio to Bitcoin. The historical average ratio is 0.0479, while the current ratio is 0.0403. Lee argued that ETH should return to this average, potentially reaching $12,000 to $22,000 if BTC hits $250,000 by year-end. He also suggested that Ethereum’s potential as a financial infrastructure could justify an even higher valuation—up to $62,000 per token—based on a projected ratio of 0.25 ETH to BTC.

In contrast, altcoins such as XRP, BNB, and Solana (SOL) remain in tighter trading ranges. XRP is forming a descending triangle, with a breakdown below $2.73 signaling a potential drop toward $2.20. BNB is trading near its 20-day EMA ($848), with buyers expected to defend the $840 level if the price pulls back. Solana’s price action is also mixed, with support at $198 and resistance at $210. A breakout above the latter could trigger a rally toward $260.

Overall, the market remains in a state of consolidation, with key resistance and support levels determining the direction of major cryptocurrencies. Investors are closely watching Bitcoin’s ability to maintain a breakout above $116,000 and Ethereum’s potential to regain bullish momentum. For altcoins, the coming weeks will likely test their resilience against ongoing bearish pressure.

Source:

[1] Price Predictions 9/5 – BTC, ETH, XRP, BNB, SOL, DOGE, ADA, LINK, HYPE, SUI (https://cointelegraph.com/news/price-predictions-9-5-btc-eth-xrp-bnb-sol-doge-ada-link-hype-sui)

[2] Ethereum Could Reach $62,000 If It Hits This ETH/BTC Ratio (https://finance.yahoo.com/news/tom-lee-ethereum-could-reach-203041720.html)