Ethereum News Today: Ethereum Rally Sparks 'Pump-and-Dump' Concerns Amid ETH-BTC Capital Rotations

Bitcoin advocate Samson Mow has voiced concerns about Ethereum’s recent price movements, suggesting they may be influenced by strategic capital rotations between Bitcoin and Ethereum held by large insider investors. Mow, CEO of JAN3, claims that Ethereum’s rally is driven by long-term ETH holders and major Bitcoin investors who are converting their BTC holdings into ETH to capitalize on short-term price gains fueled by new narratives, such as Ethereum treasury company positions [1]. He warns that these investors may reverse their strategy once prices reach attractive levels, selling ETH and repatriating profits back into Bitcoin, effectively creating a “pump-and-dump” dynamic [2].

Mow’s public commentary on X highlights the cyclical nature of such ETH-BTC rotations, which he says reflect broader market speculation and could lead to sharp corrections. He notes that “no one wants ETH in the long run,” emphasizing his belief that Ethereum lacks long-term demand and is being manipulated by large holders to create artificial momentum [3]. These concerns could deepen skepticism among retail investors, potentially affecting overall market sentiment and Ethereum’s long-term viability [4].

The recent price action in Ethereum appears to support the idea of a short-term rally. On-chain data indicates that 97% of Ethereum addresses are currently in profit, a level last seen during the 2021 bull market, which was followed by a significant price correction [5]. While some analysts interpret this as a bullish sign of broad-based ownership gains, others caution that it could signal a coming pullback, especially if large holders begin to reverse their positions.

Crypto trader and analyst Lark Davis has identified $3,800 to $4,000 as a critical price range for Ethereum. A retest of this level could validate the strength of the current rally and serve as an entry point for new buyers [6]. However, Mow’s perspective suggests that the price movement is not a natural market trend but rather a result of coordinated capital rotation among those with dual positions in both ETH and BTC.

The potential for capital to flow back into Bitcoin could further strengthen Bitcoin’s dominance in the crypto market while weakening Ethereum’s relative performance. Whether Ethereum can sustain its current momentum will depend on whether the rally is driven by genuine demand or by the selling pressure from large investors who triggered it [7]. Investors are thus left to assess whether the price movement represents a legitimate bullish trend or a temporary manipulation by insider actors.

Source: [1] https://www.ainvest.com/news/ethereum-surge-bitcoin-pump-dump-loop-2508/

[2] https://bitcoinist.com/bitcoin-vs-ethereum-mow-pump-and-dump-repeat/

[3] https://www.millionminer.com/news/2025/08/ethereum-price-surge-hype-or-strategic-capital-rotation-12-aug-25/?srsltid=AfmBOoo3ukqe0qRIJlK6rVtDl-TE0NJ8JCfG39es6AcW5dLUXIyPTT75

[4] https://www.cryptotimes.io/2025/08/11/no-one-wants-eth-in-the-long-run-samson-mow/

[5] https://www.cointribune.com/en/97-profitable-ethereum-addresses-bullish-or-warning-sign/

[7] https://www.ainvest.com/news/bitcoin-news-today-bitcoin-drops-2-6-bearish-candle-raises-short-term-pullback-concerns-2508/