Ether Takes the Lead as Crypto Markets Rebound, Bitcoin Follows Cautiously

Ethereum’s native token, Ether (ETH), rallied over 10% on July 16, climbing above $3,400 for the first time since January. This breakout highlighted Ether’s growing momentum, as it led the broader crypto market higher after a turbulent week. The surge is being widely attributed to renewed institutional inflows into Ethereum-based investment products, alongside increasing market confidence in Ethereum’s evolving role in the digital asset space.

Bitcoin (BTC), while less explosive, also made a solid attempt to recover from its recent dip. After briefly falling below $116,000, the leading cryptocurrency bounced back and hovered around the $119,000 mark. On-chain data from Glassnode revealed that investors accumulated nearly 196,600 BTC—worth approximately $23 billion—in the $116K–$118K price band, suggesting strong support levels are holding despite recent macro headwinds.

A major driver behind Ether’s strength has been the surge in spot Ether ETF demand. According to market data, Ethereum ETFs drew in $912 million in inflows last week, accounting for nearly 29% of the year-to-date capital inflows into crypto funds. The momentum appears to be sustaining into the current week, with continued inflows and fresh positions from major institutional players. Notably, Sharplink Gaming added more than 74,000 ETH to its treasury, while BitMine Immersion made headlines with a half-billion-dollar Ethereum acquisition—signaling strategic alignment with ETH’s long-term growth.

The bullish sentiment extended beyond the top two tokens. Solana (SOL), XRP, Dogecoin (DOGE), and Avalanche (AVAX) each gained between 5% and 8%, as traders interpreted the Ethereum-led rally as a broader risk-on signal. While Bitcoin remains a barometer for the crypto market’s overall health, Ethereum’s outperformance this week highlights a potential leadership rotation, driven by increased ETF exposure and the network’s diverse utility across DeFi, NFTs, and enterprise applications.

As the market heads into the second half of July, traders and analysts will be watching for confirmation of this trend. If Ether continues to outperform and Bitcoin holds its current support zone, it could mark the start of a new bullish leg. However, macroeconomic variables such as U.S. inflation data and interest rate guidance remain potential sources of volatility for digital assets.