Ethereum Whales Bet Big Amid Bitcoin's 3.79% Drop

Ethereum has been trailing behind Bitcoin in recent weeks, unable to reclaim its cycle high while Bitcoin has hit fresh all-time highs. This discrepancy is evident in the weekly structure, where Bitcoin surged to new peaks while Ethereum struggled to retest its own cycle peak at $2,737, let alone challenge the psychological $3,000 barrier. Interestingly, Ethereum's local peak on May 13 was not driven by pure strength but rather by a tactical capital rotation move, which occurred while Bitcoin was consolidating tightly between $101,000 and $103,000.

Now, it appears that smart money is setting the stage for a potential rerun. A significant Ethereum whale recently invested $60 million in Ethereum long positions at $2,666, coinciding with a sharp 3.79% drop in Bitcoin's value on May 23. This move raises the question of whether this is a savvy early strike or a high-risk play. Historically, Bitcoin's consolidation periods have sparked capital rotation into altcoins, with Ethereum demonstrating this perfectly with a sharp 21.76% single-day surge on May 8. As Bitcoin met resistance at the $103,000 supply wall, Ethereum took advantage, breaking above $2,700 in under five days, marking a near 50% rally within just one week.

A similar trend is unfolding now. After Bitcoin's sharp 3.79% nosedive, whales loaded up on Ethereum with a $60 million long. However, the gamble did not quite pay off. At the time of reporting, Ethereum had slipped back to $2,564. If this is not just a quick dip, the whale is sitting on the edge of forced liquidation, a scenario that is starting to look like a ticking time bomb. The odds of an ETH/BTC breakout still look slim. Bitcoin is back in the spotlight, reclaiming $109,000 and dragging capital with it as FOMO rebuilds. With HODLer conviction holding strong, Ethereum's rotation case is on pause for now. Investor interest in Ethereum has also cooled, with whale wallets holding over 1,000 ETH slipping from 4,918 to 4,900, matching Ethereum's 5.20% drop from its local top at $2,693. On the derivatives front, it is a clear risk-off mood with consecutive outflows and visible deleveraging ahead of macro headwinds. However, spot markets are telling a different story: 7,515 ETH has just flowed out of exchanges, suggesting quiet accumulation might be brewing beneath the chop. Still, unless ETH/BTC sentiment shifts fast, whales going long are walking a tightrope. Dip-buying is there, but reclaiming $2,700 is still a climb.