In the past week, cryptocurrency markets were driven by altcoins, with Ethereum showing strong performance. Bitcoin has held steady, with options data indicating institutions are hedging on Bitcoin but leaning towards Ethereum. Weekly gains included Dogecoin (+16%), Avalanche (+17%), NEAR (+12%), and Solana (+10%), while Bitcoin and Ethereum increased by 3.3% and 3.1% respectively.

Recent market activity has seen a slight cooling, with minor changes in the past 24 hours. Bitcoin slipped by 0.1%, Ethereum rose by 0.6%, and Solana and Dogecoin both slightly fell. However, buying interest reappeared on an hourly basis for Ethereum, Solana, Dogecoin, and LINK, signifying renewed trader interest. The Momentum Alignment Score shows Ethereum as the most consistent performer, with Bitcoin maintaining strength primarily on a weekly basis.

Institutional positioning shows a range-bound expectation for Bitcoin, with protective puts and capped upside calls. Ethereum, however, displays a slightly bullish setup, with more significant call positions near $30. The current momentum suggests a pause after recent gains, though Ethereum continues to lead, and altcoins like Solana and Dogecoin may regain strength. The outlook remains open for further price movements.

The options data for Bitcoin clearly points to a defined trading range in the near term. We see significant open interest in puts around the $27,000 level and calls near $34,000 for the September 19th expiry. With the BitVol index, which tracks Bitcoin’s expected volatility, recently dipping to its lowest levels since the Q2 rally, strategies that profit from low volatility, like selling covered calls or iron condors, appear well-suited for these conditions.

Ethereum is sending a different signal, showing consistent strength across weekly, daily, and hourly timeframes. This positive momentum is backed by options data showing a bullish skew, with 55% of open interest in calls. On-chain data further supports this, as we’ve noted a steady 15% rise in active wallet addresses since the Prague/Electra fork was fully implemented, suggesting growing network use that could justify bullish, risk-defined trades like call spreads.

For those with a higher risk appetite, altcoins like Solana and Dogecoin are interesting after their strong weekly performance. They paused over the last day but are now showing renewed buying interest on the hourly charts, suggesting they are at a key decision point. Their momentum is less consistent than Ethereum’s, making them higher-volatility plays where a breakout could be significant.

This split between a consolidating Bitcoin and a leading Ethereum is a pattern we should pay close attention to. It reminds us of similar market conditions back in late 2023, where Bitcoin remained quiet for an extended period while specific assets with strong narratives began to outperform significantly. A pair trade of long Ethereum against short Bitcoin could be a way to express this view on relative strength.

All of this market activity is happening as traders look ahead to the Federal Reserve’s interest rate decision next week. The latest inflation reports from August showed a continued, albeit slow, cooling trend, which may be contributing to Bitcoin’s lack of direction. This macro uncertainty often keeps larger assets range-bound while allowing smaller, catalyst-driven assets to move more freely.