Crypto market snapshot: Bitcoin gains momentum, Ethereum holds steady

Flagship cryptocurrency Bitcoin (BTC) staged a rebound on Wednesday, September 3, climbing back to the $111,000 level as renewed liquidity and rising institutional interest fueled momentum across the cryptocurrency market. This recovery followed a brief correction earlier in the week, when Bitcoin dipped into the $107,000–$108,000 support range.

 

Market analysts attributed the renewed bullish sentiment to significant inflows into spot Bitcoin ETFs, which registered $333 million in net investments in a single day. The strong institutional participation has reinforced confidence among traders and long-term holders alike.

 

Bitcoin, however, has seen profit booking at the higher levels and has now slipped around $110,700. At last check, BTC was trading at $110,724, representing a 0.29 per cent increase over the past 24 hours. The daily trading volume surged to $73.18 billion, while Bitcoin's total market capitalization held steady at $2.2 trillion, maintaining its position as the most valuable cryptocurrency globally. Throughout the day, Bitcoin traded within a tight range of $108,454 to $111,782, according to CoinMarketCap.

 

Despite the recent gains, Bitcoin remains more than 11% below its mid-August peak of $124,457, reached on August 14.

Analysts weigh in

Riya Sehgal, Research Analyst at Delta Exchange, believes there has been a marked shift in institutional flows, pointing to a rotation back into Bitcoin after Ethereum temporarily took the lead in August. She highlighted that while Ethereum ETFs attracted $3.9 billion in inflows last month, Bitcoin suffered $751 million in outflows. However, the tables have turned quickly, with Bitcoin ETFs — led by Fidelity and BlackRock — now recording substantial net inflows, while Ethereum-based funds saw $135 million in outflows.

 

Edul Patel, CEO of Mudrex, on the other hand, linked the renewed interest in Bitcoin to rising expectations of a US interest rate cut, which currently stands at a 90 per cent probability. He noted that recent institutional activity, including Strategy’s acquisition of 4,048 BTC, reflects strong underlying confidence in Bitcoin’s long-term trajectory.

 

On the technical front, analysts say Bitcoin remains structurally sound, having defended the crucial $108,000–$108,500 support zone. "The asset is now consolidating just below resistance levels at $111,500–$112,000. A breakout above $112,000 could pave the way for a rally toward $114,500–$116,000," said Sehgal.

 

Patel, on the other hand, added that a move above $113,650 would confirm a bullish structure, opening the door to a potentially sustained upward trend in the coming weeks.

Ethereum continues to lag

While Bitcoin leads the market recovery, Ethereum (ETH) remains stuck in a short-term downtrend. At the time of writing, ETH was trading at $4,301, reflecting a 2.34 per cent daily decline, with a trading volume of $38.51 billion. Ethereum is currently struggling to break out of a downward channel and continues to underperform compared to Bitcoin.  The $4,260–$4,300 support zone has held so far, but analysts warn that unless ETH manages to break above $4,420 with strong volume, it risks slipping further toward $4,150.

 

Harish Vatnani, head of trade at ZebPay, pointed out that Ethereum is caught in a tight battle between bulls and bears around the 20-day Exponential Moving Average (EMA) at $4,378. According to Vatnani, the flattened EMA and a Relative Strength Index (RSI) hovering near the midpoint reflect market indecision and a lack of clear directional strength.

 

From a development standpoint, Ethereum is preparing for a critical testnet transition. The Ethereum Foundation has confirmed that its largest testnet, Holešky, will be retired two weeks after the upcoming Fusaka upgrade, tentatively scheduled for the second half of September. The network will then shift focus to the new Hoodi testnet, aimed at improving testing reliability.

 

Technically, Vatnani explained that Ethereum is consolidating within the $4,200 to $4,500 range, with declining volume indicating caution among traders. He identified strong support between $4,150 and $4,000, while resistance is expected near $4,650 to $5,000.

Altcoin market snapshot

Among the altcoins, Fartcoin (FART), Four (FOUR), Bitcoin Cash (BCH), Bitget Token (BGB), Ondo (ONDO), OKB (OKB), Pudgy Penguins (PENGU), Optimism (OP), Avalanche (AVAX), and Solana (SOL) were the top gainers, posting a jump of up to 6 per cent.

 

Conversely, the day’s top losers included World Liberty Financial (WLFI), Pyth Network (PYTH), PancakeSwap (CAKE), Cronos (CRO), Mantle (MNT), Flare (FLR), Ethereum (ETH), Uniswap (UNI), and Conflux (CFX), falling up to 7 per cent.