Ethereum News Today: Ethereum Steals Bitcoin's Spotlight as Whales Shift Billions

A major Bitcoin whale has rotated a significant portion of its BTC holdings into Ethereum, marking a substantial shift in portfolio strategy. The whale, originally owning 100,784 BTC, sold 22,769 BTC (worth $2.59 billion) and converted it into 472,920 ETH in spot purchases and a derivatives long position worth 135,265 ETH ($580 million), according to blockchain analytics firm Lookonchain [1]. This move comes as the whale closed $450 million of its ETH long position, locking in $33 million in profit, and subsequently acquired an additional $108 million in ETH spot holdings [6]. The whale still holds 40,212 ETH ($184 million), with an unrealized profit of over $11 million [6].

This whale activity aligns with a broader trend among large crypto holders, with multiple "OG" wallets reactivating after years of inactivity. Lookonchain identified six wallets allegedly linked to the same whale, collectively holding 83,585 BTC valued at $9.45 billion. These movements are part of a wider pattern where Bitcoin holders are shifting capital to Ethereum, driven by macroeconomic and on-chain dynamics [1].

Ethereum’s price has surged in recent weeks, reaching a new all-time high of $4,948 [4], fueled by institutional interest and favorable macroeconomic conditions. On-chain data shows over $2 billion of BTC converted into ETH by large holders in recent days, reinforcing confidence in Ethereum’s trajectory [2]. The cryptocurrency has outperformed Bitcoin in the past 30 days, rising 17% compared to Bitcoin’s 7% decline, and its dominance in the digital asset market has dipped to 58.6% [2].

The shift from Bitcoin to Ethereum is also reflected in ETF inflows, with Ethereum ETFs outpacing Bitcoin ETFs. In one week, Ethereum ETFs recorded $3 billion in inflows, outperforming Bitcoin ETFs by a 17:1 ratio [4]. This trend continued in the most recent data, where Bitcoin ETFs saw $194.3 million in outflows, while Ethereum ETFs recorded $287.6 million in net inflows [1].

Analysts attribute this momentum to Ethereum’s growing utility in decentralized finance (DeFi) and real-world asset (RWA) tokenization, alongside its ability to generate yield through staking. Unlike Bitcoin, which functions primarily as a store of value, Ethereum offers both capital appreciation and passive income, making it more attractive to a broad range of investors [2].

The Federal Reserve’s dovish stance has also played a role in Ethereum’s rally, boosting risk appetite across markets. On-chain data shows capital rotation from Bitcoin to Ethereum accelerating, further reinforcing the narrative of Ethereum outpacing its rival [6]. This trend may continue if institutional inflows persist and macro conditions remain supportive, potentially pushing Ethereum toward $5,200, as suggested by Bitget CEO Gracy Chen [6].

As Ethereum’s price approaches the $5,000 threshold, technical indicators suggest caution. Ethereum’s relative strength index (RSI) has reached 75, signaling overbought conditions and the potential for short-term pullbacks [3]. However, the asset’s recent performance is supported by fundamental catalysts, including ETF inflows, layer-2 scaling solutions, and the Pectra upgrade. Some analysts, including ChatGPT-5, predict Ethereum will breach $5,000 before the end of August 2025 [3].

Source:

[1] The Block: Bitcoin OG Sells BTC, Buys ETH (https://www.theblock.co/post/367914/bitcoin-og-sell-bitcoin-buy-ether)

[2] Yahoo Finance: Ethereum Outpaces Bitcoin (https://finance.yahoo.com/news/ethereum-outpaces-bitcoin-why-analysts-124325283.html)

[3] Finbold: ChatGPT-5 Predicts $5,000 ETH (https://finbold.com/chatgpt-5-sets-date-when-ethereum-will-hit-5000/)

[4] Decrypt: Ethereum Jumps to New Record (https://decrypt.co/336580/ethereum-jumps-new-high-price-move-towards-5000)

[5] Investors.com: Ethereum Hits Record High (https://www.investors.com/news/ethereum-price-record-high-bitcoin-cryptocurrency-fed-speech/)

[6] Cointelegraph: $11B Bitcoin Whale Closes ETH Long (https://cointelegraph.com/news/11b-bitcoin-whale-closes-450m-eth-long-108m-ether)

[7] Reddit: Where to Swap BTC to ETH (https://www.reddit.com/r/ethereum/comments/1n0by9o/where_to_swap_bitcoin_for_ethereum_without_risk/)