QCP: Market Expecting Ethereum and Bitcoin to Face Pullback Pressure Around $4,000 and $120,000
BlockBeats News, July 28th, QCP released its daily market analysis report stating that Ethereum is gradually approaching the $4000 price level, last seen in December of last year. With the continuous inflow of funds into the Ethereum spot ETF surpassing that of the Bitcoin ETF for seven consecutive days, market attention and speculation on ETH are heating up. Considering that ETH's market value is currently only one-fifth of BTC's, the threshold to attract institutional and corporate funds is relatively lower, making price action more sensitive.
Despite Ethereum dominating most of the headlines in recent weeks, Bitcoin has demonstrated quiet resilience. Although the inflow of funds into the Bitcoin spot ETF has slowed down, the price trend remains steady.
Bitcoin's dominance rate still remains at around 60%, with almost no fluctuation in the past week, reflecting the market's long-term confidence in Bitcoin as a store of value asset rather than a broad rotation into the altcoin market. This also indicates that there is still room for ETH and other mainstream coins to further compete for market share. For comparison, in November 2021 when ETH hit its all-time high, Bitcoin's dominance rate dropped to below 45%, while ETH approached 20%.
However, in the short term, the market's long positions are relatively crowded. The open interest of BTC and ETH perpetual contracts has reached nearly a one-year high, at $45 billion and $28 billion, respectively; the funding rates of major exchanges are also generally above 15%. Although it has not reached the level of "irrational exuberance" or extreme liquidation risk, a slight negative impact could trigger a chain reaction similar to what was seen last Friday.
It is worth noting that some whales have started to take profits on their long positions. For example, a larger ETH 26SEP25 3.6k/4k/4.2k bullish call spread combination has been closed out; at the same time, a large number of BTC 8AUG25 $110,000 bearish put options have been bought as a hedge against short-term downward risk.
Based on the options flow and the risk reversal flattening in the front-end tenor, the market expects ETH and BTC to face some profit-taking pressure around $4000 and $120,000, respectively. However, in the current environment of strong momentum, compelling narratives, and macro tailwinds, QCP believes that long-term holders and institutional investors will continue to "buy the dip," as seen last Friday.
You may also like

Bhutan Quietly Sells Over $22M in Bitcoin, Drawing Speculation Over Possible Moves
Key Takeaways Bhutan has transferred over $22 million in Bitcoin from sovereign wallets in the past week. The…

BitMine Endures a $7B Unrealized Loss as Ethereum Dips Below $2,100
Key Takeaways BitMine is facing a significant financial challenge with an unrealized loss of over $7 billion in…

Trump-Linked World Liberty Financial Under Scrutiny Following $500 Million UAE Stake
Key Takeaways A U.S. House investigation is examining a $500 million UAE stake in Trump-related World Liberty Financial.…

Asia Market Open: Bitcoin Tumbles as Asian Equities Reflect Global Tech Retreat
Key Takeaways: Bitcoin’s price plunged by 6% to $72,000, reflecting the spillover effects from the global tech sector’s…

Crypto Firms Propose Concessions to Banks as Stablecoin Disputes Stall Key Crypto Bill
Key Takeaways: Crypto companies are attempting to navigate stablecoin disputes with banks but agreements remain elusive. Industry representatives…

CoolWallet Introduces TRON Energy Rental to Minimize TRX Transaction Costs
Key Takeaways CoolWallet has integrated TRON’s energy rental services, offering users lower transaction fees while maintaining asset security.…

CFTC Officially Withdraws Biden-Era Proposal to Ban Political and Sports Prediction Markets
Key Takeaways: The CFTC has rescinded a 2024 proposal and subsequent 2025 advisory that aimed to prohibit event…

Binance Says Assets Rose Amid Alleged Bank Run Attempt
Key Takeaways: Binance reported an unexpected increase in assets during a community-driven withdrawal campaign, challenging conventional expectations of…

Same Macro Tape, Different Bid – Gold Absorbs Flows as Bitcoin Swings
Key Takeaways: Gold is experiencing significant demand growth, especially via ETFs and central banks, projecting a robust performance…

Crypto Price Prediction Today, February 4 – Focus on XRP, Cardano, and Dogecoin
Key Takeaways Bitcoin is facing significant pressure, affecting the entire cryptocurrency market, including heavyweights like XRP, Cardano, and…

Vitalik Buterin Urges Ethereum Builders to Innovate Beyond Clone Chains
Key Takeaways Vitalik Buterin criticizes the trend of creating copy-paste EVM chains, encouraging developers to focus on truly…

Best Crypto to Buy Now February 4: XRP, Solana, Hyperliquid Picks
Key Takeaways XRP remains one of the top picks for cross-border transactions due to its high speed and…

XRP Price Prediction: Ripple Quietly Unlocks a Billion Tokens – Is a Price Shock Coming in the Next Few Hours?
Key Takeaways Ripple has released one billion XRP tokens into the market, potentially causing a shift in XRP…

Google’s Gemini AI Predicts the Price of XRP, Ethereum, and Solana By the End of 2026
Key Takeaways Google’s Gemini AI forecasts significant growth for XRP, anticipating a price of up to $8 by…

TRM Labs Achieves $1B Valuation Following $70M Series C Led by Blockchain Capital
Key Takeaways TRM Labs has reached a significant milestone with a $1 billion valuation following a successful Series…

Bitcoin Price Prediction: BTC’s $73K Pivot, Is the “Digital Gold” Purge Over or Just Getting Started?
Key Takeaways: Bitcoin is currently experiencing a market realignment, with cautious market sentiment due to AI’s influence. The…

Solana Price Prediction: Did SOL Just Bottom at $100? Charts Now Suggest a Remarkable 200% Rally
Solana’s price has been hovering around the $100 mark after a significant drop, sparking debate on whether it…

Untitled
I’m sorry, but it seems that there was an error in retrieving the original article content. Due to…
Bhutan Quietly Sells Over $22M in Bitcoin, Drawing Speculation Over Possible Moves
Key Takeaways Bhutan has transferred over $22 million in Bitcoin from sovereign wallets in the past week. The…
BitMine Endures a $7B Unrealized Loss as Ethereum Dips Below $2,100
Key Takeaways BitMine is facing a significant financial challenge with an unrealized loss of over $7 billion in…
Trump-Linked World Liberty Financial Under Scrutiny Following $500 Million UAE Stake
Key Takeaways A U.S. House investigation is examining a $500 million UAE stake in Trump-related World Liberty Financial.…
Asia Market Open: Bitcoin Tumbles as Asian Equities Reflect Global Tech Retreat
Key Takeaways: Bitcoin’s price plunged by 6% to $72,000, reflecting the spillover effects from the global tech sector’s…
Crypto Firms Propose Concessions to Banks as Stablecoin Disputes Stall Key Crypto Bill
Key Takeaways: Crypto companies are attempting to navigate stablecoin disputes with banks but agreements remain elusive. Industry representatives…
CoolWallet Introduces TRON Energy Rental to Minimize TRX Transaction Costs
Key Takeaways CoolWallet has integrated TRON’s energy rental services, offering users lower transaction fees while maintaining asset security.…