BTC Price Hits $125K: Macro Meets Momentum
Bitcoin’s run toward new highs seemed almost inevitable as the Federal Reserve’s tone softened, with markets now pricing in two rate cuts by the end of the year.
Liquidity is returning, the dollar is weakening, and investors are looking for assets that can outperform traditional markets. Bitcoin, as usual, is leading the pack.
The timing couldn’t be more symbolic as we enter the final, and historically most bullish, quarter of the year.
Meanwhile, on-chain metrics show long-term holders distributing slowly into strength while new entrants flood in through exchange-traded products.
Institutional flow data from ETF issuers shows consistent net inflows, with a whopping $791 million purchase from BlackRock’s IBIT on October 3. This rally isn’t just a short squeeze, it seems; it’s driven by real demand.
Is the ETH Price Coming Next?
With all the buzz around Bitcoin, Ethereum traders are watching closely. The second-largest cryptocurrency by market cap has so far lagged behind Bitcoin’s performance this year, but technical analysts believe that could soon change.
According to Merlijn The Trader, Ethereum has “loaded its next leg.” He points to a clean bull flag on the daily chart, a classic continuation pattern that often precedes explosive moves. His target? $6,800. He wrote:
At the time of writing, ETH was hovering around $4,500, according to altcoin investor, KOL, and entrepreneur, Ted on X, the next key resistance level is at $4,750.
On the downside, the $4,100-$4,200 range remains the support zone for the ETH price, a zone that bulls will want to defend if the market cools off short term.
ETH/BTC Ratio Showing Early Signs
The ETH/BTC ratio is an indicator often used to gauge Ethereum (ETH) strength relative to Bitcoin. It has started ticking higher after months of decline.
Historically, Ethereum tends to outperform Bitcoin in the later stages of a bull cycle as capital rotates from BTC into altcoins.
If Bitcoin’s dominant rally pauses near current levels, that rotation could kick in. Traders are already noting early signs of capital flowing into ETH staking derivatives, Layer 2 ecosystems, DeFi protocols, and stablecoins.
According to Token Terminal, Ethereum has added $100 billion in stablecoins since January 2024.
There are all echoes of the rotation phases seen in previous cycles.
Ethereum Price Prediction: Narrative Shifts in Play
Beyond technicals, narrative plays a big role for Ethereum price prediction. Ethereum still holds the core position as the leading smart contract platform, but competition from Solana and new ecosystem players has fragmented attention.
However, with ETH 2.0 staking locked, liquid staking derivatives booming, and gas fees holding relatively stable, investors are finding renewed confidence in Ethereum’s ability to provide the lion’s share of on‑chain activity.
Institutional adoption also continues to rise. Multiple filings for spot Ethereum ETFs are pending. If the SEC clears them, it could serve as the catalyst that finally pushes the ETH price toward that long‑awaited all‑time high.
The combination of technical setup, growing macro tailwinds, and capital rotation could be setting the stage perfectly for Ethereum’s next surge.
As always in crypto, nothing moves in a straight line. Short‑term volatility is expected. But after a rocky road to get here, the Ethereum (ETH) price looks primed for a potential breakout, its strongest setup since late 2021.