Ethereum News Today: Ethereum dominates capital flows to Solana as the $4K price target approaches.
Key Points:
Ethereum outperforms Solana in short-term capital flows as the SOL/ETH hot capital ratio reaches its lowest level since the beginning of the year.
Open interest in ETH reached a record level of $58 billion; ETH/BTC has surpassed the 200-week exponential moving average.
Funding rates remain low, indicating strong demand for the market compared to leveraged speculation.
ETH is approaching a psychological resistance at $4,000 as institutional accumulation and exchange-traded funds increase.
Ethereum takes center stage in the altcoin market, outperforming both Solana and Bitcoin in capital flows and futures activity as it approaches the key price level of $4,000.
According to Glassnode, the hot capital ratio of SOL/ETH - which tracks the short-term real capital movement between the two assets - has dropped to 0.045, its lowest level this year, indicating a 42% decline since April. The data confirms that speculative capital is shifting away from Solana and back to Ether, reinforcing Ethereum's role as the leading altcoin in the current market dynamics.
“While both ETH and SOL saw cash inflows in July, capital flow is now clearly favoring Ether,” noted Glassnode.
ETH/BTC indicates altcoin rotation.
The increasing strength of Ethereum is also reflected in the ETH/BTC pair, which has risen above the 200-week exponential moving average for the first time in over two years - a key signal that traders are rotating capital from Bitcoin to altcoins.
While Bitcoin remains stuck under $116,000 amid ongoing selling pressure, Ether has risen to $3,902, with price movement supported by technical momentum and on-chain activity.
Open interest reaches an all-time high.
Open interest in Ethereum futures (OI) across major exchanges has risen to an all-time high of $58 billion, with its market share increasing to 34.8%. In contrast, Bitcoin's share has dropped to 47.1%, down from 59.3%, according to Hybrix Capital.
This shift indicates increased institutional interest and deeper participation in the Ethereum ecosystem. Notably, the daily transaction count for Ethereum has also reached new levels, demonstrating increased activity on the network.
Funding rates remain low with rising immediate demand.
Despite the strong rise, funding rates in ETH remain low - a bullish sign, indicating that the market is not overly reliant on leveraged long positions. Compared to March and December 2024, current funding rates are nearly 50% lower, suggesting a healthier market structure.
“This rise is driven more by market accumulation than by speculation,” analysts noted, highlighting the continued accumulation of exchange-traded funds and vaults.
According to Nate Geraci, President of Novadiam, exchange-traded funds in Ethereum and corporate financial entities have purchased about 1.6% of the total ETH supply since early June - a significant demand force supporting price movement.
$4,000 ETH: Psychological breakout?
While Ethereum corrected nearly 10% over the past week after five consecutive weeks of gains, it has already recovered by 9%, recently testing the $3,800 level. Now, all eyes are on the psychological resistance of $4,000, which has acted as a ceiling since early 2022.
“$4,000 has been resistance forever. Once it breaks, I doubt we will return below it anytime soon. Price discovery is near,” said digital currency analyst Yale.
With capital rotation, favorable funding conditions, and driven accumulation of exchange-traded funds, market participants are closely watching to see if Ethereum will finally enter price discovery above $4,000 - which could ignite the next phase of the altcoin cycle, according to Cointelegraph.#BTC走势分析 #btc #ETH #solana $ETH
