Ethereum has continued to outperform other altcoin sectors as supply shrinks and whale bets mount. With transactions hitting records and ETH rebounding, the question remains: can this momentum spark a sustained rally?
On the daily chart, Ethereum [ETH] has traded higher, logging modest gains over the past 24 hours. The altcoin has maintained its lead against Bitcoin [BTC], fueled by whale and institutional accumulation, with retail investors also joining the trend. While most other altcoin sectors have shifted back to closing in the red, Ethereum has stood out as a leader in the market.
Comparing ETH to other altcoin sectors, it is clear that Ethereum has shown clear leadership this month. ETH has led with a performance reading of 0.20, slightly higher than those of Layer 2s (L2) and DeFi tokens. Although DeFi and L2s briefly took the lead in mid-August, ETH reclaimed its position as the leader by the end of the month. Sectors such as gaming, AI, and staking have posted losses, with Ethereum standing out as the leader of capital rotation.
On the weekly price action, ETH spiked to $4,900 before facing rejection, signaling a potential rally. The altcoin has tested the $4,400 zone, showing signs of recovery from a dip below $4,300. As of press time, ETH is up by about 13%.
If ETH continues to advance toward $4,800, large liquidation clusters could trigger resets. Additionally, $7.23 billion in ETH short positions are at risk of a squeeze, potentially propelling the price toward $5,000.
The supply of Ethereum is shrinking as whales, institutions, and retail investors continue to accumulate more ETH. Staking has contributed to the supply shock, with nearly 30% of ETH staked. BlackRock reportedly accumulated nearly $1 billion worth of ETH over a week, while a whale went long on Hyperliquid with 25x leverage at $4,380, building a $4.39 million position.
The monthly transaction count for Ethereum hit a new all-time high of 46.99 million, despite seeing a reduction in gains for the month of August. DEX volume reached $135 billion, while TVL reached $240 billion. Active Addresses surpassed 15 million, reinforcing Ethereum’s dominance in the market.
Overall, Ethereum has maintained its position ahead of its peers, with strong on-chain momentum supporting its continued dominance in the altcoin market. The question now remains whether this momentum can spark a sustained rally for Ethereum and potentially lead to further gains in the near future.