Ethereum News Today: Big Bitcoin Whale Swaps Billions to Back Ethereum's Rise

A major Bitcoin whale with an estimated $11 billion in assets has shifted $2.59 billion in Bitcoin to Ethereum, acquiring 472,920 ETH (worth $2.2 billion) and a $577 million long position in Ethereum on the decentralized exchange Hyperliquid, according to blockchain intelligence firm Lookonchain [1]. On Monday, the whale closed a $450 million portion of its Ethereum long position at an average price of $4,735, securing a $33 million profit before purchasing an additional $108 million in spot ETH. The whale still holds 40,212 ETH ($184 million), with an unrealized profit of over $11 million.

This movement highlights a broader trend of institutional-grade capital rotation from Bitcoin to Ethereum. Over the past month, Ethereum’s price has risen nearly 25%, outperforming Bitcoin’s 5.3% decline. The shift has been attributed in part to large whale activity, with analysts like Willy Woo noting that such rotations may have contributed to Bitcoin’s recent dip below $114,000 [2]. On Sunday, Bitcoin fell nearly 2.2% in less than nine minutes, reaching a low of $112,174, according to CoinGecko data. Ethereum, meanwhile, dropped from $4,937 to $4,738 during the same period, though both assets recovered about half of their losses.

Gracy Chen, CEO of Bitget, noted that Ethereum’s rally past $4,300 indicates strong demand for the ecosystem and potentially marks the start of an altcoin season [1]. She expects Bitcoin to trade between $110,000 and $120,000 in the next one to two weeks, while Ethereum is projected to range between $4,600 and $5,200. Chen cited Federal Reserve Chair Jerome Powell’s “unexpectedly dovish comments” at the Jackson Hole symposium as a key factor in boosting risk appetite among crypto investors. On-chain data also suggests that capital is shifting from Bitcoin to Ethereum, as whales continue to sell BTC to increase ETH exposure.

The whale in question, identified by crypto analyst MLM, has also been strategically executing large trades on Hyperliquid, staking 275,500 ETH (around $1.3 billion) and taking long positions in ETH worth over $2.6 billion. The whale’s actions appear to have triggered a chain reaction in the market, with traders adjusting positions in response to the increased demand for Ethereum. This dynamic suggests a potential self-reinforcing cycle, where rising Ethereum prices attract more capital, further fueling upward momentum.

Another whale reportedly sold $76 million worth of Bitcoin to open an ETH long position last week, reflecting a broader trend of Bitcoin holders diversifying into altcoins. Ethereum, which has surged 220% since hitting a low of $1,471 on April 9, has regained ground lost to Bitcoin and Solana during earlier phases of the bull run. Analysts are now watching whether this trend can continue, with some suggesting that Bitcoin’s dominance has rolled over and that Ethereum could be leading the charge into a new altcoin season [3].

The crypto market currently stands at a crossroads, with Ethereum’s dominance hovering around 13.47% and Bitcoin’s at 58.66%. According to Blockchain Center data, the market is in a transitional phase, neither fully in an altcoin season nor a Bitcoin-led bull run. An official altcoin season is defined when 75% of the top 50 coins by market cap outperform Bitcoin over 90 days. While Ethereum has yet to clear all resistance levels on its BTC chart, the current setup of the 50 and 200-day exponential moving averages resembles those seen during previous bull cycles, when altcoins surged after Bitcoin lost dominance.

Source: [1] $11B Bitcoin Whale closes $450M ETH long, scoops up ... (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether) [2] Bitcoin OG whales to blame for BTC's painful rise: Willy Woo (https://cointelegraph.com/news/bitcoin-flash-crash-blamed-crypto-whales-big-eth-trades) [3] Altcoins Pump As Ethereum Hits ATH - Which Is The Best ... (https://cryptodnes.bg/en/altcoins-pump-as-ethereum-hits-ath-which-is-the-best-crypto-to-buy-now/)