- Ethereum has gained 93% since April, outperforming Bitcoin’s 66% and breaking correlation after mid-July to chart its own path.
- Ethereum ETF volume surged when ETH had a breakthrough, and Bitcoin ETF metrics remained calm, which points to institutional demand.
- The market exhibits a well-worn cycle: Bitcoin goes first, then Ethereum, and then, finally, the altcoins start to get some attention.
Ethereum has emerged as the new market focus after showing strength while Bitcoin dropped below $115,000. Capital appears to be rotating decisively toward ETH as institutional activity picks up.
Bitcoin Drops, Ethereum Holds Above Key Level
The price of Bitcoin dropped below $115,000, and as a result, many short-term holders started to flee, as evidenced by the sell-off of Bitcoin holders. The price action demonstrates a level of weakness not seen since its rally earlier this year. Meanwhile, Ethereum stayed steady, maintaining levels above $3,600 throughout the session.
Bitcoin climbed 66% since April, and Ethereum increased 93% in the same time frame. The gap expanded further in mid-July when Ethereum was able to commence its separate path. The divergence signals that Ethereum may be entering a new phase of leadership in the market cycle.
Traders watching closely now view this as more than a short-term trend. Ethereum maintaining its position while Bitcoin retraces could point to deeper shifts in capital positioning.
ETF Inflows Suggest Institutional Shift Toward Ethereum
A tweet from crypto analyst BitBull linked Ethereum’s breakout to a surge in ETF inflows. According to the post, while Bitcoin ETF volumes stayed flat, Ethereum ETF activity jumped right at the start of the breakout.
This pattern indicates that institutional investors could be redirecting capital toward Ethereum-based products. The timing aligns closely with the price breakout, suggesting cause and effect between the volume spike and ETH’s rally.
Unlike previous cycles, this move does not appear to be driven by retail excitement. ETF volumes tend to reflect interest from larger and longer-term market participants. That shift gives Ethereum a stronger foundation to build on in the current cycle.
What It Means for the Broader Market
The current rotation matches historical patterns often seen in crypto cycles. Bitcoin leads the rally, then Ethereum gains momentum, followed by wider market participation. As BitBull put it, “BTC leads → ETH takes over → then the rest of the market wakes up.”
Ethereum is now outperforming Bitcoin and attracting ETF interest. This divergence suggests the market may be entering a phase where ETH takes leadership. If the trend continues, other assets may soon follow Ethereum’s lead.
