As Bitcoin (BTC) hovers in the range of $115,000 to $120,000, Ethereum has taken the lead by breaking through $4,300, becoming the new focus of capital chasing.
Currently, futures and on-chain data indicate that mainstream capital is shifting from Bitcoin to Ethereum and other quality altcoins. With the rising activity in the Ethereum ecosystem and staking scale reaching new highs, this capital rotation may open a new chapter for mid-term allocation, but the accompanying high volatility risk cannot be ignored.
Recently, the cryptocurrency market has seen significant structural changes, with Ethereum (ETH) leading Bitcoin (BTC) in price performance, institutional capital inflows, and market sentiment. As of August 12, the price of ETH was around $4,300, close to its historical high in 2021, with a year-to-date increase of about 29%, surpassing the approximately 28% rise of BTC during the same period.
Exploring the reasons behind this, the first is the growing interest of institutional investors in ETH. BlackRock's ETH spot ETF attracted approximately $5 billion and $700 million in inflows in July and August, respectively, with assets under management doubling year-to-date to nearly $10 billion. Meanwhile, BitMine has surged from zero holdings to become the world's largest ETH treasury in just 35 days, holding over 830,000 ETH, becoming an important force in the institutional market.
On the technical side, after the ETH "merge" upgrade, the daily issuance significantly decreased, activating a "consumption-based deflation" model, which has driven the development of ecosystem applications such as DeFi, real-world assets (RWA), and stablecoins. The increased use of Circle's USDC stablecoin on the ETH network has further boosted the demand for ETH.
Despite Ethereum's recent strong upward momentum, market derivatives data shows that investor sentiment remains cautious and has not fully released bullish signals.
Generally, in a bearish market, the Delta skew indicator of options exceeds 6%, reflecting a higher premium for selling contracts; conversely, during excessive bullishness, this indicator falls below -6%. Currently, this indicator remains at -3%, indicating a relatively neutral market sentiment. Notably, after Ethereum's price experienced a 13% drop on August 2, the sentiment in the options market briefly leaned bearish but quickly stabilized thereafter.
Analysts point out that if Ethereum can maintain stability above $4,000, market confidence will further strengthen, likely driving more buying pressure and helping the price challenge the $5,000 mark.
However, the current global macroeconomic environment still presents significant uncertainties, especially the risk of increased import tariffs in the U.S., which could hinder the global economic recovery. Additionally, although a summit between U.S. and Russian leaders is set to take place, temporarily easing geopolitical tensions, overall risk sentiment continues to affect investors' risk appetite.
It is worth noting that since July, Ethereum's price has cumulatively risen over 80%. Against this backdrop, some investors may choose to take profits and shift their funds to crypto assets with greater growth potential. Among them, Sui, Pi Network, and Unilabs Finance are seen by many as representative altcoins likely to stand out in the next market cycle.
In recent years, Sui has become a robust competitor among large-cap crypto assets. As one of the respected Layer-1 blockchains, Sui has attracted attention from both retail investors and institutional capital.
Sui is known for its evolving blockchain architecture and high-performance, scalable decentralized applications (dApps). Recently, the Sui blockchain has expanded its application scenarios through a series of significant partnerships, driving price increases. As of the time of writing, Sui is priced at $3.66.
Market analysts expect that as the user base continues to grow, benefiting from its fast transaction speed, low fees, and eco-friendly attributes, Sui is likely to break through the $4 mark by the end of August and re-enter the ranks of the best-performing altcoins in this bull market.
Unilabs Finance is a fully AI-driven digital asset management platform currently in its presale phase, having successfully raised over $12.3 million.
Unilabs Finance utilizes advanced AI technology to bring institutional-level investment performance to retail investors. With impressive presale results and rapid product iteration, the platform is showing potential to reshape the way digital capital is invested and managed.
Currently, Unilabs Finance's AI asset management engine has processed over $30 million in assets. This engine rebalances portfolios through four smart funds (BTC Fund, AI Fund, Mining Fund, and RWA Fund), analyzing market data, trends, investor risk preferences, and fundamentals to identify the next batch of potential assets. In the sixth phase of the presale, UNIL tokens are still being sold at a significant discount of $0.0097.
After experiencing a nearly 90% drop, Pi Network has recently shown a notable price rebound. In the past three trading days, the token's price has strongly rebounded by about 40%. However, most analysts believe this is more likely a "short squeeze" rather than a true trend reversal.
If Ethereum's price experiences a larger pullback, Pi Network has the potential to attract some investor attention, but it must overcome several key obstacles. In the future, this token may face strong resistance in the $0.50 supply zone. Additionally, Pi Network needs to maintain its current breakout pattern from the descending channel to sustain bullish momentum.
Recently, Ethereum has successfully led the cryptocurrency market with technological upgrades and strong institutional capital inflows, attracting significant attention and capital influx. As network activity rises and the ecosystem continues to improve, ETH has not only solidified its core position in the DeFi and stablecoin sectors but has also become a barometer for capital rotation and altcoin trends. Meanwhile, emerging altcoins like Sui, Pi Network, and Unilabs Finance are also showing impressive growth potential, becoming market hotspots.
However, investors should be wary of the risks posed by high market volatility. ETH faces key resistance levels in the short term, and if it fails to break through effectively, a price pullback may occur. Additionally, the high on-chain leverage suggests potential risks of sharp declines; the overall market remains significantly influenced by the macroeconomic environment and regulatory policies, which may exacerbate price fluctuations. While altcoins have growth potential, they also generally face issues such as insufficient liquidity and limited project maturity. It is advisable for investors to remain cautious, manage risks effectively, and avoid blindly chasing highs.
Related: Bitcoin (BTC) shows "bad candlestick": price may drop to $95,000
Original article: “Ethereum (ETH) Leads Capital Rotation, Are Altcoins Poised for a Surge?”
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