Ethereum News Today: Ethereum Outpaces Solana and Bitcoin in Capital Inflows and Futures Dominance

Ethereum has recently outpaced Solana in attracting capital inflows, with key metrics indicating growing investor interest in the second-largest cryptocurrency. The SOL/ETH Hot Capital Ratio, a gauge of short-term capital movement, has hit a year-to-date low of 0.045, a 42% decline since April, suggesting that Ether is increasingly favored over Solana despite both assets seeing inflows in July [1]. This shift reflects broader capital rotation toward Ethereum, driven by factors such as strong spot accumulation and lower futures funding rates [2].

Ethereum’s futures dominance has also expanded, with open interest reaching $58 billion, an all-time high. The network’s share of total open interest across major exchanges has climbed to 34.8%, while Bitcoin’s share has fallen from 59.3% to 47.1% [1]. This trend highlights Ethereum’s growing role as a focal point for trading activity and speculative positioning. At the same time, aggregated funding rates for ETH remain significantly lower than during previous attempts to break the $4,000 level in March and December 2024, suggesting that the current rally is being driven by more sustainable, less leveraged buying [2].

The ETH/BTC trading pair has also reached multi-month highs, crossing above the 200-day exponential moving average for the first time in over two years. This development signals renewed interest in Ethereum relative to Bitcoin and aligns with its recent price rebound to its average trading range [1]. Analysts note that Ethereum’s treasury companies and spot ETFs have collectively purchased approximately 1.6% of the total supply since the beginning of June, further reinforcing on-chain strength [2].

With Ethereum’s price currently retesting the $3,800 level after a recent 9.72% correction, attention is turning to the $4,000 psychological threshold. While this level has historically served as resistance, some analysts argue that a sustained break above it could signal a new phase of price discovery [2]. The current market environment appears more favorable for such a move, given the lower leverage and stronger spot demand compared to previous attempts [1].

Despite these positive indicators, the broader crypto market remains influenced by macroeconomic and regulatory developments. For example, EU banking regulators have finalized rules allowing banks to hold Bitcoin and Ether, a potential catalyst for further institutional adoption [1]. However, Ethereum’s ability to maintain upward momentum will depend on continued inflows, stable macroeconomic conditions, and the ability to hold key technical support levels.

The data underscores a notable shift in market sentiment, with Ethereum outpacing both Solana and Bitcoin in terms of capital inflows and futures dominance. While the $4,000 level is not a guaranteed outcome and should not be considered an analyst forecast, it remains a critical technical and psychological benchmark for Ethereum’s next move [1][2].

Source: [1] Ethereum beats Solana in capital inflows: $4K target in sight (https://cointelegraph.com/news/ethereum-beats-solana-in-capital-inflows-4k-target-in-sight)

[2] Ethereum outpaces Solana and Bitcoin in capital inflows and futures dominance (https://mx.advfn.com/bolsa-de-valores/COIN/FLOWUSD/crypto-news/96586971/ethereum-beats-solana-in-capital-inflows-4k-targ)