Ethereum Leads Crypto Rally as Bitcoin Inches Toward $120,000

A surge in ETF inflows has fueled Ethereum’s breakout, while Bitcoin consolidates below resistance—setting the stage for broader altcoin momentum.

The cryptocurrency market started the week strong, with Bitcoin hovering near the $120,000 mark and Ethereum outperforming major altcoins, gaining over 3% in the past 24 hours. Investors and analysts are increasingly optimistic as Ethereum’s sharp move upward coincides with rising institutional flows and speculation of an incoming “Ethereum season.”

Ethereum Surges Amid Institutional Demand

Ethereum (ETH), the world’s second-largest cryptocurrency, rose by more than 3% on Monday, marking one of its best single-day performances in recent weeks. The rally was driven in large part by strong inflows into Ethereum-focused exchange-traded funds (ETFs), reflecting growing institutional confidence in ETH as a viable long-term asset.

Data from crypto investment firms shows that Ethereum-related products brought in over $80 million last week. This is a big change from the $20 million that was pulled out the week before. The shift has renewed hope for Ethereum’s price to rise, especially as investors believe in its shrinking supply and growing use in DeFi and smart contracts.

Bitcoin Nears $120K, Faces Key Resistance

Meanwhile, Bitcoin (BTC) continues to consolidate below the $120,000 level, gaining marginally amid increased spot demand and favorable macroeconomic sentiment. Analysts note that BTC is currently testing a significant technical resistance zone between $118,500 and $120,000. A decisive breakout above this band could send the cryptocurrency to new all-time highs.

Despite the measured pace, Bitcoin remains up over 15% in the past month, with ongoing ETF inflows providing strong tailwinds. BlackRock, Fidelity, and other major asset managers continue to report steady demand for their BTC ETF offerings. The spot Bitcoin ETF market has already amassed over $20 billion in assets under management (AUM), underscoring its impact on price momentum.

Talks of an Ethereum Season Gain Ground

With Ethereum now outpacing Bitcoin in short-term gains, traders and analysts have begun speculating about a potential “Ethereum season”, a period historically marked by ETH outperforming BTC and sparking a broader altcoin rally.

Some crypto veterans suggest this shift is already underway. “The ETH/BTC ratio is rising again, which often signals a return of risk appetite among investors,” said a strategist at Glassnode. “We could see a spillover effect benefiting Layer 2 tokens and DeFi ecosystems.”

Macroeconomic Outlook Remains a Key Factor

Outside of market activity, bigger economic trends are also affecting how people feel about crypto. The U.S. Federal Reserve is being cautious about raising interest rates, and inflation seems to be easing. Because of this, investors are showing more interest in riskier assets like cryptocurrencies.

Additionally, geopolitical tensions and central bank digital currency (CBDC) developments across Asia and Europe have continued to draw attention toward decentralized alternatives such as BTC and ETH.

What’s Next for BTC and ETH?

Technically, Bitcoin’s near-term outlook hinges on whether it can decisively close above $120,000, which could pave the way for a move toward $130,000 in the coming weeks. Conversely, failure to breach this resistance may result in short-term consolidation or a slight pullback to the $112,000–$114,000 range.

For Ethereum, maintaining its current momentum above $6,700 is crucial. Analysts say a breakout above $6,850 could trigger further bullish momentum, potentially targeting $7,200–$7,500 in the short term.

As both assets gain traction, altcoins like Solana (SOL), Chainlink (LINK), and Arbitrum (ARB) have also shown positive movement, further indicating growing confidence in the broader market.

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