Weekly Crypto Update: Ethereum Outperforms Bitcoin

Cryptocurrency markets displayed a resilient performance over the week ending July 4, with Bitcoin remaining steady at about US$108,000 and Ethereum steadily rising above US$2,500. Bitcoin saw a brief surge above US$110,000, driven by strong inflows into spot Bitcoin exchange-traded funds (ETFs), reaching nearly US$50 billion in assets under management. Despite this, momentum slowed down on July 4 due to a robust US jobs report and concerns about trade policies, causing Bitcoin to close the week around US$108,165, slightly lower than its peak.

Market analysts indicate that a substantial break above the US$114,000 resistance level could signal a possible rally to as high as US$143,000, with solid support around US$106,000. In contrast, Ethereum outperformed the wider market, rising approximately 6%-7% throughout the week and ending near US$2,515. The second-largest cryptocurrency surpassed a crucial resistance level at US$2,520, supported by increasing staking demand and interest from institutional investors. Analysts cited optimistic options positioning and an evolving perception of Ethereum as a foundational asset in decentralized finance as contributing factors to its growth.

The broader altcoin sector began to show signs of momentum, with Solana, Arbitrum, Uniswap, and Pepe recording substantial gains, hinting at the potential start of an “altseason.” Looking ahead, the role of institutional demand, especially through ETFs like BlackRock’s IBIT, continues to be pivotal in stabilizing cryptocurrency markets. However, ongoing macroeconomic uncertainties such as US fiscal policy adjustments and probable tariff implementations could introduce further volatility in the near term.

The overall market outlook appears cautiously optimistic, with a nod to technical setups and investor sentiment. Market watchers are closely monitoring Bitcoin’s crucial breakout point of US$114,000 and Ethereum’s ability to maintain levels above US$2,520 as benchmarks of stability and growth. As stakeholders continue to observe market trends and developments, the broader sentiment leans towards a cautious optimism in navigating the complex dynamics of the crypto space.