**Ethereum Gains Strength While Bitcoin Struggles, S&P 500 Outlook Brightens**

The cryptocurrency market is experiencing a shake-up as Ethereum continues to gain momentum while Bitcoin faces pressure. The week began with a steep drop across the crypto space, largely triggered by a massive sell-off from a major Bitcoin holder. This sparked widespread liquidations and raised doubts about Bitcoin’s potential for a September rally—a month that historically brings bearish trends for BTC.

Meanwhile, Ethereum is benefiting from strong buying interest. A large investor recently moved billions of dollars from Bitcoin into Ethereum. Specifically, 22,769 BTC worth around $2.59 billion was sold, and in turn, the investor bought 472,920 ETH for $2.22 billion, plus additional leveraged positions on ETH. This shift has redirected market attention to Ethereum, raising speculation that it might outperform Bitcoin in the near term.

**Bitcoin vs. Ethereum: Where the Money Is Moving**

Ethereum’s rising buying volume and increased interest in ETH futures on the CME point to growing institutional involvement. Retail traders seem to be stepping back, while professionals are increasing their exposure to Ethereum. In contrast, Bitcoin has entered a period of consolidation, showing weak price action and failing to hold recent gains.

Though Ethereum hasn’t fully overtaken Bitcoin yet, it’s clearly gaining favor among big players and institutions. With strong technical signals and continued momentum, ETH could continue its upward trend while BTC stabilizes or retreats.

**Bitcoin Faces Key Challenges**

Bitcoin tried to bounce back after falling to $111,000 earlier in August but couldn’t hold above $123,000. A weak rally added just 3.27% before sellers took control again. As of August 26, BTC was trading around $110,030 after another failed breakout attempt.

Over the weekend, a wave of selling pressure pushed BTC down to $113,000—wiping out more than $846 million in long positions. After a small recovery to $113,491, prices dropped again to a low of $110,584. The price briefly dipped below the psychological $110,000 mark but quickly rebounded.

In August alone, Bitcoin lost 3% in value while Ethereum jumped 25%. With September known for being bearish for BTC and the upcoming FOMC meeting adding uncertainty, investors are moving their capital into ETH. Analysts say this shift shows declining confidence in Bitcoin’s short-term performance.

Still, Bitcoin isn’t out of the game. Long-term trends remain positive thanks to support from exponential moving averages. Bulls may regroup if macro conditions become more favorable.

**Ethereum’s Volatility Shows Both Risk and Opportunity**

Ethereum has seen big swings too. On Sunday, ETH hit a new all-time high of $4,946 but quickly pulled back about 10%. After spiking to $4,800, ETH settled around $4,400. The sudden drop suggests many traders locked in profits after hitting new highs.

Despite the pullback, ETH remains in a bullish trend overall. A large chunk of recent crypto investments—$2 billion in spot purchases and another $1.3 billion in speculative positions—has gone into Ethereum. This shift signals strong investor belief in ETH’s long-term potential.

**S&P 500: Positive Outlook Ahead**

Outside of crypto, the stock market is also showing strength. Jefferies has increased its forecast for the S&P 500 index to 6,600 points by year-end—up from a previous target of 5,600. This bullish revision is based on strong corporate earnings and reduced concerns about the U.S. economy.

Other big names like UBS, Citigroup, and HSBC have also upgraded their S&P 500 targets as investor sentiment improves. Companies focused on artificial intelligence and the “Magnificent Seven” tech giants have led this growth. Financial stocks are also holding up well, pointing to a healthy economic backdrop.

Jefferies expects S&P 500 earnings per share to rise nearly 10% to $267 next year. They also anticipate three Fed rate cuts starting in September 2025, following cautious signals from Fed Chair Jerome Powell at the recent Jackson Hole event.

However, some companies still mention tariffs as a concern for profitability. That said, better logistics and cost controls seem to be reducing the impact compared to earlier quarters.

**Key Takeaways for Investors**

– Ethereum is gaining strength thanks to whale activity and institutional interest.
– Bitcoin is struggling but still holds long-term potential.
– September may be tough for BTC based on historical trends and current market behavior.
– The S&P 500 outlook is improving with stronger earnings forecasts and potential Fed rate cuts ahead.

These shifting dynamics suggest investors are adjusting their strategies—favoring Ethereum over Bitcoin in the short term and leaning into U.S. equities amid growing optimism about economic resilience.