Bitcoin News Today: Ethereum and Bitcoin Face Pullback Pressure Near $4000 and $120000 Amid ETF Inflows and Volatility Risks

BlockBeats News reports that QCP’s latest market analysis highlights growing expectations of pullback pressure for both Ethereum (ETH) and Bitcoin (BTC) as they approach key price levels. According to the firm, ETH is nearing the $4,000 threshold last seen in December 2023, fueled by seven consecutive days of stronger inflows into Ethereum spot ETFs compared to Bitcoin’s. This trend underscores heightened market speculation on ETH, partly driven by its relatively lower institutional adoption—ETH’s market cap is currently one-fifth of BTC’s—making it more susceptible to capital inflows [1].

While Ethereum dominates recent headlines, Bitcoin’s performance remains quietly robust. Despite slowing ETF inflows, BTC’s price trend has shown stability, with its dominance rate holding steady at approximately 60% over the past week. This resilience reflects sustained long-term confidence in Bitcoin as a store of value, contrasting with broader altcoin rotations seen in 2021. At that time, ETH’s dominance surged to nearly 20% as BTC’s fell below 45% amid its all-time high [1].

QCP notes short-term risks from crowded long positions in both cryptocurrencies. Open interest for BTC and ETH perpetual contracts has hit nearly $45 billion and $28 billion, respectively—annual highs—while funding rates on major exchanges remain above 15%. Such conditions, though not yet indicative of irrational exuberance, could amplify volatility if negative triggers emerge, echoing market dynamics observed last week [1].

Signs of profit-taking are already evident. Large ETH whale positions, such as a 26SEP25 bullish call spread at $3,600–$4,200, have been closed. Simultaneously, BTC bears have purchased 8AUG25 put options at $110,000 to hedge against downward risks. These actions, combined with flattening risk reversal metrics in front-end options, signal market anticipation of corrections around $4,000 for ETH and $120,000 for BTC [1].

Despite short-term pressures, QCP emphasizes that macroeconomic tailwinds and strong narrative momentum support continued institutional buying during dips. The firm references last Friday’s market behavior, where long-term holders capitalized on pullbacks, as a potential template for future moves.

Source: [1] [QCP: Market Expecting Ethereum and Bitcoin to Face Pullback Pressure Around $4,000 and $120,000] [https://www.theblockbeats.info/en/flash/304813]