Ethereum News: Ethereum Surge Sparks Debate Over Capital Rotation Back to Bitcoin
Ethereum Surge Sparks Debate Over Capital Rotation Back to BitcoinKey TakeawaysSamson Mow predicts ETH holders will rotate profits back into Bitcoin as prices rise.ETH/BTC ratio doubled from April lows, breaking multi-year trendline.Historical cycles suggest ETH and altcoins could still see further upside before rotation.ETH weekly close highest since November 2021 at $4,300, 12% below all-time high.Mow Warns of “Bagholder’s Dilemma” for Ethereum InvestorsBitcoin maximalist and Jan3 CEO Samson Mow believes Ethereum’s recent rally could be short-lived, predicting ETH holders will ultimately rotate gains back into Bitcoin. According to Mow, many large ETH holders also hold significant BTC from earlier allocations and are using it to fuel Ethereum’s rally on new narratives — such as the surge in Ethereum treasury holdings among public companies.“Once Ether is high enough, they’ll dump it, creating new generational bagholders, and then rotate the gains back into BTC,” Mow said. He added that breaking all-time highs could be “challenging” for ETH due to intensified selling pressure near psychological resistance levels.ETH/BTC Ratio Breaks Multi-Year DowntrendThe ETH/BTC ratio — a measure of Ether’s value in Bitcoin terms — currently sits at 0.036, doubling from its five-and-a-half-year low of 0.018 in April. This upward move has coincided with ETH’s 21% weekly gain, pushing it to $4,307, while Bitcoin has seen comparatively modest price action.Despite the technical breakout, Mow dismissed its significance, saying Ethereum has “always been a vehicle for those people to get more Bitcoin” during market cycles.Historical Rotation Patterns Suggest More Upside for ETHNot all analysts agree with Mow’s bearish ETH outlook. Investor Ted Pillows predicts Ether will break its all-time high before triggering a mini altseason, after which capital may rotate back into Bitcoin until it reaches ~$140,000. A final rotation into ETH and altcoins could follow — a pattern seen in previous bull markets.Bitcoin dominance has fallen 10% since late June, reflecting the ongoing rotation into altcoins. Institutional accumulation of ETH has also driven demand, particularly for DeFi platforms seeing higher TVL and yield farming growth, according to Nick Ruck, director at LVRG Research.Momentum Remains StrongETH just closed its strongest weekly candle since November 2021, ending Sunday near $4,300. The asset now sits 12% below its all-time high of $4,878, with bullish sentiment still dominant despite pushback from Bitcoin maximalists.If Ether breaks above $4,880, analysts say the next psychological milestone is $5,000, with potential upside supported by institutional inflows, treasury holdings, and DeFi expansion.