Bitcoin (BTC) is currently trading around 112,945 USD, close to a price level considered 'important' by analysts as the market begins a new week. The strong previous surge of BTC is gradually cooling down, making way for the outstanding breakout of Ethereum.
The price surge of ETH attracts attention, while Bitcoin remains quiet.
After a strong breakout on Friday, pushing BTC prices close to 117,500 USD thanks to macroeconomic information, the market was almost 'frozen' throughout the weekend.
Specifically, the Chairman of the U.S. Federal Reserve (Fed), Jerome Powell, in a speech at the Jackson Hole Conference hinted at the possibility of interest rate cuts in September. This signal quickly propelled the cryptocurrency market and risky assets, with Ether (ETH) – the largest altcoin – breaking to a new historical high of 4,957 USD.
In light of this development, investors' attention has completely shifted to ETH.
"ETH is trying to close the week above 4,600 USD. This will be an important confirmation signal that it is not a bull trap," renowned analyst BitBull commented on X.
According to him, if ETH closes the week above this level, it will not only be the highest weekly candle close ever but also open up room for a new rally towards 5,200 – 5,500 USD right in the next week.
Citing data from Arkham, the Lookonchain analysis platform reported that many long-dormant BTC amounts have been converted to ETH.
BitBull assesses the demand from whales for Ether as 'surprisingly strong.'
"Although ETH has increased by over 300% in just 4 months, whales still show no signs of slowing down," another post emphasized.
It seems that the surge of ETH is not yet over.
Ether and Bitcoin face a series of new CME gaps.
In another development, renowned analyst Rekt Capital pointed out that the ETH/USD pair has just completed 'filling' a gap that existed in the CME Group's Ether futures market.
Meanwhile, with Bitcoin, all eyes are focused on a new gap formed after the weekend price fluctuations.
"BTC had a rather calm weekend – which is completely understandable after the strong breakout last Friday. If the new week opens with the current state, the market will leave a relatively large gap," analyst Daan Crypto Trades commented.
He added: "As you can see, in most cases, these gaps are filled on Mondays, or even disappear before they can form."
Previously, Rekt Capital emphasized that the level of 114,000 USD is the 'key threshold' for Bitcoin in the weekly candle close.
As Bitcoin Magazine reported, some analytical perspectives still predict that Ether could enter a correction phase in September, based on historical models.
