Ethereum is undergoing its first significant correction after an explosive rally that drove the price from $2,500 to $3,800 in less than three weeks. Despite this cooling off, the bulls remain in control, with the $ETH holding firm above the $3,600 level, a key support zone that now acts as a base for potential consolidation. The market seems to be digesting recent gains, with signs that Ethereum's strength may be far from over. On-chain data from Sentora reinforces the optimistic outlook. Last week, Ethereum recorded the highest weekly volume of large transactions since 2021. This increase in high-value activity signals growing interest from institutional investors and large traders, even amid short-term volatility. With legal clarity in the U.S. improving and Ethereum's fundamentals strengthening, the current pause may be setting the stage for a new upward movement.
Sentora's data confirms a significant shift underway: large capital is returning to Ethereum. Last week, on-chain transfers above $100,000 totaled over $100 billion, the highest weekly volume since 2021. This spike in high-value transfers reflects renewed institutional interest, reinforcing Ethereum's role as the leading altcoin amid evolving market dynamics. The timing of this increase is critical. Ethereum's price surged aggressively from $2,500 to $3,800 in a matter of weeks, and institutional capital seems to be rotating from Bitcoin to $ETH . While Bitcoin remains in a tight consolidation range just below its all-time high, Ethereum's bullish momentum and its on-chain strength suggest that it may now be leading the charge. This rotation has sparked discussions about the onset of 'Ethereum season,' a pattern seen in previous market cycles when $ETH outperforms BTC and capital begins to flow into the broader altcoin market. Some analysts believe this could mark the early stages of a much-anticipated altseason. Historically, Ethereum leads these phases, acting as a gateway for investors to explore high-volatility assets across the crypto ecosystem. If ETH maintains its current strength and breaks above the $4,000 level, it could trigger a broader market expansion.
Ethereum is undergoing its first significant correction since the beginning of a strong rise from the $2,500 region in early July. After reaching a local high of $3,801, ETH is now trading around $3,662, a drop of approximately 2.7% on the day. Despite the minor correction, the overall structure remains optimistic. The current price is above the $3,600 zone, a level that now acts as a key short-term support. The volume has slightly decreased during this correction, suggesting that selling pressure remains relatively controlled. ETH is still trading well above its 50, 100, and 200-day moving averages, reinforcing the bullish outlook.
