Recently, the crypto market shows a clear divergence: Bitcoin faces continuous decline after retreating from its historical high, while Ethereum strengthens against the trend due to institutional funds, and AERO, while boosted by capital, hides short-term challenges.
Bitcoin's downward trend is hard to stop, with support levels becoming key
Bitcoin, which just surged to a new high of $124,000 a few days ago, has recently normalized its decline. Affected by the U.S. PPI data exceeding expectations, investor expectations for Fed rate cuts have cooled, and the strengthening dollar has triggered a sell-off in risk assets, with Bitcoin dropping over 2% in the past 24 hours to $115,600. This wave of decline has also affected altcoins, with Ethereum dropping 3% to $4,340 after nearing its historical high, and Ripple (#XRP) falling 4% to $3.
Analysts believe that aside from macro data pressures, U.S. Treasury Secretary's statement that 'Bitcoin will not be included in strategic reserves' further dampens market confidence, prompting investors to withdraw from the crypto market while awaiting improvements in Federal Reserve policy and the macro environment.
However, BTC Markets analysts point out that the spot ETF data suggests this is more likely a capital rotation rather than a complete exit, with institutional participation still at a moderate level. The current key support levels for Bitcoin are $115,000 and $112,500, and a drop below could test $110,000; a moderate statement from the Federal Reserve at this week's Jackson Hole symposium may revive risk appetite and reverse the downward trend.
Ethereum is bullish against the trend, with institutional capital acting as a 'strong booster'
Unlike Bitcoin, Ethereum (#ETH) maintains a bullish momentum through August 2025. Despite facing historical high resistance, its strength is mainly supported by continuous inflow of institutional funds and optimistic sentiment in the ETF market. Binance data shows that whales have been increasing their holdings of Ethereum, and ETF demand continues to grow, with significant capital inflow keeping Ethereum stable amid volatility.
The active participation of institutions and ETFs is crucial: the capital injection from corporations and ETF providers has strengthened market resilience, and the rising interest from retail and institutional investors has also boosted confidence. Although it has not yet broken through the historical high resistance, overall, Ethereum is still favored for its potential to break through, thanks to institutional support and ecological vitality.
AERO encounters resistance after a rise of 8.5%, with declining trading volume raising concerns
Aerodrome Finance (#AERO) has recently performed well, rising 8.5% in the past 24 hours, backed by over $16 million in capital inflow. Data shows that savvy investors, referred to as 'smart money', have significantly bought AERO over the past week, with a position value of $785,000, and market liquidity reaching $52 million, the highest level in the current market.
The derivatives market is also heating up, with open interest rising 16% to $100 million, indicating strong bullish sentiment.
The spot market has seen a net inflow of over $1 million in 48 hours, with some investors opting for long-term holding.
However, AERO's path to rising is not smooth. The current price is around $1.47, facing Fibonacci resistance levels, and even if it breaks through, there are still other resistances nearby.
More notably, as of the time of writing, its trading volume has decreased by 40% to $127 million, and the cooling of capital enthusiasm may lead to insufficient upward momentum; if it fails to break the resistance, it may correct to the $1.25 support level.
To summarize: The crypto market is currently dominated by macro environment and capital flow. Bitcoin needs to hold its support level while waiting for policy signals, Ethereum relies on institutional funds to stabilize, and AERO's short-term performance depends on whether it can break resistance and regain trading volume.
