The current cryptocurrency market is in a strong upward trend, with Ethereum nearing the $4,000 resistance level and Bitcoin making a remarkable recovery after adjustments.
Although Ethereum and many Altcoins show upward price momentum, signals from Bitcoin Dominance and Altcoin capitalization indicate that investors need to be cautious and consider short-term profit-taking instead of risking investing ahead of a breakout.
MAIN CONTENT
Ethereum is approaching the $4,000 mark but is under significant selling pressure; the market shows signs of stagnation.
Total Altcoin Capitalization is still fluctuating within a wide range; investors are advised to focus on risk management and not to expect an immediate breakout.
Bitcoin Dominance indicators suggest that Bitcoin's trend may outperform Altcoins in the short term, boosting profit-taking demand.
What is Ethereum and why is the ETH price approaching $4,000?
Ethereum is the second largest Blockchain platform, developing robustly and nearing the psychological resistance of $4,000 thanks to increased institutional cash flow and heightened on-chain activity.
Ethereum is at the center of the DeFi (Decentralized Finance), NFT, and many decentralized applications waves globally, attracting attention from both retail and institutional investors.
Vitalik Buterin, co-founder of Ethereum, Devcon 2024
Since the end of July, Ethereum's price has continuously approached the $3,941 zone but has repeatedly faced strong profit-taking pressure just below $4,000. This price level is considered to have significant psychological impact on the market.
Notably, the on-chain activity of the Ethereum network remains extremely high, reflected in transaction volume, access to DApps, and activity from prominent treasury organizations and investment funds. This is the driving force behind the demand for ETH and has the potential to sustain a long-term upward price trend, despite complex short-term fluctuations.
Selling pressure on Ethereum and the short-term market trend
Although Ethereum is sending many bullish signals, selling pressure still exists whenever the price approaches resistance zones, which can cause corrective moves or hinder real breakouts.
In fact, from the end of July to now, ETH has continuously been rejected at the $3,941 mark. The selling pressure from large holders taking profits is the reason that ETH's upward price action has somewhat lost momentum, even though institutional demand remains strong.
The selling pressure from large investors is a constant factor whenever ETH approaches major resistance levels. Investors need to be cautious and manage their expectations regarding short-term breakouts.
Tom Lee, CEO of Fundstrat, Bloomberg July 2025
Additionally, the sentiment of waiting for a clear market trend causes many traders to shift to a state of waiting for new opportunities, reducing leverage or prioritizing quick profit-taking positions.
The role of on-chain factors and institutional demand in Ethereum's price trend
On-chain activity on the Ethereum network and demand from institutions and investment funds are the main drivers keeping ETH's long-term upward trend intact.
The current state of the network operating at high intensity, the growth of large wallets, along with continuously hitting new highs in DApp transaction volume and asset tokenization is the basis for many experts to remain confident in the vision of ETH price exceeding $4,000.
The demand from institutional investors and crypto asset funds continues to maintain the upward momentum for ETH, despite short-term price fluctuations.
Glassnode, on-chain market report July 2025
Data on cash flow into the wallets of large investment funds and the increasing number of Validators reinforce the argument that buying activities remain strong, helping ETH to have room to aim for higher price milestones.
Total Altcoin Capitalization: Fluctuation range and breakout risk
Since July, the total market capitalization of Altcoins (TOTAL2) has mainly moved sideways in the range of $1.34 – $1.54 trillion, currently around $1.5 trillion but has not been able to break through to new highs or a strong upward trend.
Each time Altcoin capitalization approaches the range, the market again faces short-term reversal risks. Failed breakouts often cause significant losses for traders who risk catching the bottom or anticipating.
TradingView Analytics, July 2025
Analysis from technical models shows that the sideways range will continue to dominate the Altcoin trend until TOTAL2 decisively breaks the $1.54 trillion zone. Betting on the breakout scenario before clear confirmation signals carries high risks.
Long-position traders should consider taking profits when nearing upper ranges to preserve gains, rather than continuously expecting breakouts. If the market continues to move sideways, this action will help minimize the risk of getting stuck in high price areas.
Analyzing Bitcoin Dominance: Warning of major risks for Altcoins?
The Bitcoin Dominance (BTC.D) index has also fluctuated around a narrow range in the past three weeks, currently at a local support area. A recovery from here will strengthen Bitcoin's position compared to Altcoins, reducing the likelihood of Altcoins creating strong upward waves in the short term.
History shows that each time BTC.D rises, capital flows shift back to Bitcoin, sparking a reversal or strong adjustment wave in Altcoin groups. This is further reinforced by Bitcoin just having a bounce from the $113,100 support zone, helping to spread a positive sentiment across the entire cryptocurrency ecosystem.
Volatility Index (last 3 weeks) Impact on Altcoin Bitcoin Dominance Fluctuating around local support zone When it rises, Altcoins struggle to break out Total Altcoin Capitalization $1.34 – $1.54 trillion Moving sideways, not confirming a new upward trend
Clearly, for Altcoins to lead the market, there needs to be a breakout signal in terms of both capitalization and the BTC.D index. Currently, this scenario is not strong enough, forcing investors to carefully consider reasonable profit-taking zones.
What should investors do now: Take profits on Altcoins or continue holding?
Given the situation where Altcoin capital is moving within a range and BTC Dominance is at a support level, cautious investors are advised to prioritize profit-taking as prices approach the peak regions of the range.
Risk management is a key strategy at this stage. One should not go all-in on breakout expectations, as deep decline risks will always loom when there is no real breakthrough signal.
Michael Novogratz, CEO of Galaxy Digital, comments on CNBC August 2025
If the market confirms a decisive breakout and there is consensus from capitalization indicators and Bitcoin Dominance, investors can consider entering positions or increasing their stakes. However, when the signals are still unclear, prioritizing profit preservation and waiting for new opportunities is a wise choice.
Many analysts point out that the strategy of 'taking partial profits', limiting the use of high leverage, and continuously reassessing the market is a suitable solution at this time of high volatility.
Can Ethereum reach a new ATH soon?
Although ETH has not been able to break above $4,000 in the short term, many institutions and market experts still have high hopes that ETH will soon establish a new historical peak (ATH), based on factors such as institutional cash flow, DApp growth, and increasing real demand.
Tom Lee, CEO of Fundstrat, stated that the forecast of $6,000 for ETH is entirely feasible in the long term if institutional demand holds steady, despite short-term correction factors or profit-taking sentiment.
ETH price could establish a new ATH zone in the next growth cycle, as on-chain data and large capital flows continue to be strong.
Messari Crypto Research, market report August 2025
However, this process does not happen immediately. The market will need many accumulation sessions, testing supply and demand, and reflecting investor expectations before creating a new bullish effect.
Comparing market dynamics: Bitcoin, Ethereum, and the Altcoin group
Comparing the strength of key coin groups helps investors clearly identify the main cash flow in the market and adjust strategies accordingly.
Criteria Bitcoin Ethereum Altcoin (others) Institutional appeal High, always a safe haven asset High, but dependent on DApp development Average, highly volatile Market leadership potential Large, dominating overall cash flow Large, positive long-term trend Quite weak, dependent on speculative cash flow Actual demand (On-chain) Sustainable, high transaction volume Very strong due to DApp, NFT, DeFi Unstable, quick reversal Price volatility More stable than Altcoins Average volatility, influenced by sentiment High volatility, high risk
The table above shows that Bitcoin still maintains its position as 'king', while Ethereum leads the wave of application innovation, while Altcoins – although still have momentum, face a clearly higher price adjustment risk.
Forecasting cash flow movements and investment strategies until the end of 2025
In light of the capital flow differentiation, experts forecast that the range-bound state of total Altcoin capitalization and the Bitcoin Dominance index may continue for a while longer before establishing a clear trend by the end of the year.
It is advisable to prioritize assets within the large capitalization group, limit all-in Altcoins when there are no real signs of market breakout. The accumulation – adjustment – breakout cycles will depend on institutional cash flow, macroeconomic policies, and technological updates on key platforms like Ethereum, Solana, and Polygon.
Mr. Tom Lee notes that patiently waiting for a confirmation signal for a breakout is the key to success, while maintaining risk control is a vital requirement.
Frequently Asked Questions
Why hasn't Ethereum been able to break above $4,000?
Profit-taking pressure from large holders, while the market is testing the strength of new cash flows and confirming trends before breakout.
What does the sideways movement of total Altcoin capitalization signify?
This reflects the state of indecision in general cash flow, with investors hesitant to take risks and waiting for clear confirmation signals for a new trend.
How does Bitcoin Dominance affect Altcoin opportunities?
When this index rises, capital flows prioritize Bitcoin over Altcoins, making it difficult for Altcoins to break out strongly despite having separate positive signals.
What should investors do if a breakout has not been confirmed?
It is advisable to actively take partial profits, limit leverage, and closely monitor capitalization trends as well as the Bitcoin Dominance index.
How important is institutional cash flow for Ethereum?
Institutional cash flow and treasury funds are key factors supporting ETH's sustainable price increase despite continuous short-term fluctuations.
What is an effective risk management strategy when the market is moving sideways?
A reasonable portfolio allocation, diversifying assets, prioritizing large coins, and gradually reducing positions as prices approach range peaks.
What signs confirm a real breakout?
Altcoin capitalization exceeding $1.54 trillion while Bitcoin Dominance decreases is a signal confirming a much stronger breakout.
Source: https://tintucbitcoin.com/bao-dong-thay-doi-xu-huong-bitcoin/
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