After a sharp pullback, the crypto market is showing early signs of recovery. The global market cap stands at $3.87 trillion, up 1.2% in the past day, with Bitcoin trading near $113,700 and Ethereum above $4,290.
After a sharp pullback, the crypto market is showing early signs of recovery. The global market cap stands at $3.87 trillion, up 1.2% in the past day, with Bitcoin trading near $113,700 and Ethereum above $4,290.
According to David Duong, the recent market pullback began with U.S. economic data. Inflation numbers from the Consumer Price Index (CPI) looked fine earlier last week at 2.7%. But then came the Producer Price Index (PPI), which surprised the market.
At the same time, traders are watching the Jackson Hole Economic Symposium, where the Federal Reserve could deliver “hawkish” signals about interest rates. This created the perfect excuse for a cool-off after months of gains in Bitcoin, Ethereum, and other altcoins. In short, the pullback was less about disaster and more about timing.
Even with the pullback, the big question remains: when will the altcoin season begin? Conditions are stronger than earlier this year. At first, the outlook pointed mainly to Bitcoin and Ethereum leading the rally, while only a few altcoins kept up. But now, liquidity in the market looks more supportive.
The expert said that Bitcoin may hold around $110,000, but that level is more about psychology than calculation. Institutions are preparing to move deeper into crypto, and the U.S. Clarity Act could soon provide regulatory certainty. If that law passes by the end of September, it could unlock even more growth.
Ethereum continues to influence many altcoins, but the market is showing more independence. Projects like Lido with liquid staking have already moved in their own direction.
He said that ETH already had a strong run, and some worry about further downside. But multiple developments point to continued demand. Fundraising rounds, new DeFi projects, and liquid staking are helping ETH stay strong.
Ethereum continues to hold steady above $4,100, a level that has now flipped from resistance into support. Buyers stepped in strongly at that zone, filling large orders and helping the price climb higher.
As long as Ethereum stays above $3,374, the broader uptrend remains intact. Additional support lies near $3,665, creating a cushion for the market even if price dips. Overall, Ethereum’s outlook stays bullish as long as these key levels hold.
