Ethereum News Today: Ethereum Dominates Capital Inflows Over Solana as $4K Price Target Nears
Key Takeaways:Ethereum outpaces Solana in short-term capital inflows as SOL/ETH Hot Capital Ratio hits YTD lows.ETH open interest reaches record $58B; ETH/BTC breaks above 200-week EMA.Funding rates remain low, suggesting strong spot demand over leveraged speculation.ETH nears psychological $4,000 resistance with increasing institutional and ETF accumulation.Ethereum is taking center stage in the altcoin market, outperforming both Solana and Bitcoin in capital inflows and futures activity as it approaches the key $4,000 price level.According to Glassnode, the SOL/ETH Hot Capital Ratio — which tracks short-term realized capital movement between the two assets — has dropped to 0.045, its lowest level this year, marking a 42% decline since April. The data confirms that speculative capital is rotating away from Solana and back into Ether, reinforcing Ethereum’s role as the leading altcoin amid current market dynamics.“While both ETH and SOL saw inflows in July, capital flow is now clearly favoring Ether,” Glassnode noted.ETH/BTC Signals Altcoin RotationEthereum’s growing strength is also reflected in the ETH/BTC pair, which has surged above its 200-week exponential moving average for the first time in more than two years — a key signal that traders are rotating capital from Bitcoin into altcoins.While Bitcoin remains stalled below $116,000 amid persistent sell pressure, Ether has rebounded to $3,902, with price action supported by technical and on-chain momentum.Open Interest Hits All-Time HighEthereum’s futures open interest (OI) across major exchanges has soared to an all-time high of $58 billion, with its market share rising to 34.8%. In contrast, Bitcoin’s share has fallen to 47.1%, down from 59.3%, according to Hyblock Capital.This shift indicates increased institutional interest and deeper participation in the Ethereum ecosystem. Notably, Ethereum’s daily transaction count also reached new highs, further validating growing network activity.Funding Rates Stay Low as Spot Demand RisesDespite the strong rally, ETH funding rates remain subdued — a bullish signal, as it suggests that the market is not overly reliant on leveraged longs. Compared to March and December 2024, current funding rates are nearly 50% lower, indicating a healthier market structure.“This rally is driven more by spot accumulation than speculation,” analysts noted, highlighting continued ETF and treasury accumulation.According to Nate Geraci, president of NovaDius, spot Ethereum ETFs and corporate treasury entities have each purchased roughly 1.6% of the total ETH supply since early June — a significant demand force supporting price action.$4,000 ETH: A Psychological Breakout?While Ethereum corrected nearly 10% over the past week following five consecutive weeks of gains, it has already recovered 9%, recently retesting the $3,800 level. Now, all eyes are on the $4,000 psychological resistance, which has served as a ceiling since early 2022.“$4,000 has been resistance since forever. Once it breaks, I doubt we go back below anytime soon. Price discovery is close,” said crypto analyst Jelle.With capital rotation, favorable funding conditions, and ETF-driven spot accumulation all aligning, market participants are watching closely to see if Ethereum finally enters price discovery above $4,000 — potentially igniting the next phase of the altcoin cycle, according to Cointelegraph.