QCP: Traders Anticipate Profit-Taking Around the $4,000 Ethereum and $120,000 Bitcoin Levels

According to a recent market analysis report by QCP Asia, as reported by Jinse Finance, Ethereum’s price has surged strongly, approaching the $4,000 mark and reaching its highest level since December last year. For seven consecutive days, spot ETH ETFs have seen greater capital inflows than Bitcoin, and with a market capitalization only one-fifth that of Bitcoin, Ethereum is more sensitive to institutional funds. Meanwhile, Bitcoin has demonstrated remarkable resilience. Despite long-term holders selling 80,000 BTC last Friday, the market quickly absorbed the supply, with traders swiftly buying the dip. Bitcoin’s market dominance remains stable at around 60%, indicating sustained investor confidence in its role as a store of value, while also providing room for mainstream coins like Ethereum to expand their market share. Short-term positions in the market are relatively crowded, with open interest in Bitcoin and Ethereum perpetual contracts reaching yearly highs of $45 billion and $28 billion, respectively, and funding rates exceeding 15%. Option market liquidity suggests that traders anticipate profit-taking around the $4,000 level for Ethereum and $120,000 for Bitcoin, but institutional investors may continue to buy on pullbacks.