Ethereum has regained its swagger, crossing the $4,000 threshold for the first time in eight months and hitting an intraday high of $4,188.
This psychological milestone brings Ethereum within striking distance just $900 of its November 2021 all time high of $4,867. Traders see this as a critical breakout point, fueling speculation of a sustained rally in the weeks ahead.
Institutional Demand and ETF Inflows Power Rally
ETH has rallied approximately 44.5% over the past month, boosted by strong institutional accumulation and staggering inflows into U.S. spot Ethereum ETFs. Investors have poured in nearly $5 billion in just one month, outpacing Bitcoin ETF inflows and underscoring Ethereum’s growing appeal as a blue chip crypto asset.
Top players are building massive positions: BitMine now holds over 833,000 ETH (roughly $3.3 billion), while SharpLink controls close to 522,000 ETH (around $2.1 billion). Analysts suggest these firms could eventually control up to 10% of ETH’s circulating supply, tightening market liquidity and potentially amplifying future price swings.
Could Altcoin Season Be Arriving?
Ethereum’s resurgence coincides with a drop in Bitcoin’s dominance now at about 59% of the total crypto market. This shift is often seen as a precursor to altcoin season, where investor capital rotates into alternative cryptocurrencies, driving outsized gains for smaller projects.
Why Altcoin Season Matters
Breaking through the $4,000 mark signals renewed bullish sentiment, heightened institutional confidence, and increasing mainstream adoption. With ETFs providing easier access for traditional investors and whale accumulation intensifying, the market could be on the cusp of one of the most active altcoin cycles in recent years.
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