Ethereum Price Prediction: ETH/BTC Surge Strengthens Alt Season Bets, ETH Long Positions Aim for $500 Billion Market Capitalization Barrier

Ethereum (ETH) started the week with a rebound, currently reporting at $3,890 during the European session today (28). The nearly 45% increase in the ETH/BTC monthly pair indicates that Ethereum outperformed Bitcoin in July, with ETH long positions targeting the significant market capitalization level of $5,000.

(Source: Trading View)

Ethereum reached $3,940 during today's Asian session, having risen 60% just in July, while Bitcoin only increased by 11%. From a purely performance standpoint, Ethereum has excelled, becoming the top choice cryptocurrency for the July surge.

As Bitcoin pulls back from its high point of $123,000, the Altcoin Season is heating up, with capital shifting towards Ethereum and other smart contract products. Traders are clearly moving from BTC to stocks with faster trends and smaller market capitalizations.

The momentum is driving the narrative, with Ethereum currently less than 20% away from its all-time high of $4,800. Traders are wondering if breaking through $4,000 is just the beginning of a larger event.

Strong Demand from Traditional Institutions

SharpLink Gaming increased its holdings by 77,210 ETH over the weekend, worth $295 million, bringing its total holdings to 438,017 ETH, currently valued at over $1.6 billion. This is not retail noise - this is the belief of a giant whale.

At the beginning of this month, venture capital veteran Peter Thiel revealed that he would hold a 9.1% stake in the cryptocurrency miner BitMine, which holds over $500 million worth of Ether. This indicates his tremendous confidence in the growing institutional influence behind Ethereum.

Exchange-traded funds (ETFs) are also receiving increasing attention. Last week, the Ethereum spot ETF attracted $1.85 billion in inflows, while the Bitcoin spot ETF only attracted $72 million in funds. BlackRock's ETHA currently holds over $10 billion.

Ethereum target market capitalization 500 billion USD

The market capitalization of Ethereum is currently approaching 470 billion USD, with long positions viewing the 500 billion USD mark as the next psychological milestone.

Even with the recent surge, Ethereum still has a long way to go to reach its record. For momentum traders, this gap may look tempting—especially with Bitcoin already nearing its own high.

Indeed, the second half of this year has started off well. With the accelerated inflow of ETF funds, rising on-chain activity, and heightened institutional sentiment, Ethereum is increasingly resembling the main character in the next chapter of cryptocurrency, rather than just a supporting role.