Whale rotation in Ethereum has increased pressure on Bitcoin

The correction of digital gold will continue due to the record growth of leverage and massive capital inflow into the second largest cryptocurrency. This was stated by the head of research at K33, Vetle Lunde.

According to him, the nominal open interest in Bitcoin futures has reached a two-year high of 310,000 BTC ($34 billion). Over the past two months, the figure has increased by 41,607 BTC, and over the past weekend — by 13,472 BTC. Such a sharp jump signals a potential "turning point," the expert noted.
At the same time, annual financing rates have risen from 3% to nearly 11%. Lunde compared the current situation to the accumulation of leverage in the summer periods of 2023 and 2024, which ended with a cascade of liquidations in August.

This time the peak occurred at the end of the month, indicating a longer consolidation phase.

"The risk of sharp declines has increased due to mass closures of long positions," Lunde warned.

Capital rotation in Ethereum

The additional volatility in the market was caused by the actions of a Bitcoin whale, who last week exchanged 22,400 BTC for Ethereum via the decentralized exchange Hype..nite. This helped the second-largest cryptocurrency by market capitalization to set a new all-time high of $4956.

The ETH/BTC ratio exceeded 0.04 for the first time in 2025, shifting market momentum towards Ethereum.

However, Lunde noted that despite the rally of Ethereum in dollar terms, the relative dynamics of the crypto asset against Bitcoin remain weak. Annual, two-year, and three-year metrics show negative returns.
Historically, the peaks of the second largest cryptocurrency by market capitalization have coincided with market tops — this was observed in 2017 and 2021. This was usually followed by an altseason. In the current year, the dominance of digital gold is 58.6%, compared to 40% during previous cycles.

"Although the dependence between the previous highs of ETH and BTC raises concerns, we have not yet reached a situation that clearly indicates overheating of the entire altcoin market," Lund emphasized.

As of the time of writing, Bitcoin is trading at around $113,300. In the last 24 hours, its price has increased by 2%. At the end of August, analysts at Swissblock named the "rescue" support level for the first cryptocurrency.