Ethereum Price Nears $4K While Traders Rotate From BTC to ETH

Key Insights:

• Ethereum price is gearing up for a rally, as evidenced by ETH open interest crossing $58 billion.
• Funding rate at 0.0091% signals the rally is real and not just driven by leverage.
• Ethereum price tests $3,900–$4,000 resistance, with a breakout targeting $4,300.

As Bitcoin cools off, Ethereum is heating up. Traders are now shifting big money from BTC to ETH, and the numbers prove it.

With over $58 billion in bets stacked on Ethereum and momentum building across charts, many believe ETH might be gearing up for its next big move.

Let’s break down what’s really happening, using charts and simple signals.

Derivatives Show Traders Are All-In on Ethereum Price

One chart from Glassnode shows Ethereum’s open interest (the total value of active futures contracts) just crossed $58 billion, the highest it’s been all year.

That’s not all. Ethereum’s open interest dominance, its share of all futures bets, has jumped close to 40%, while Bitcoin’s has dropped toward 53%.

That’s a clear signal that traders are rotating funds out of Bitcoin and into Ethereum. Just last month, Bitcoin held 60% of the market share for open interest. Now, Ethereum is closing in fast.

This kind of shift doesn’t happen by accident. It means traders are betting Ethereum might give better returns than Bitcoin in the short term.

The last time this type of dominance flip happened was ahead of ETH’s run to $4,000.

Also, a second chart shows Ethereum perpetual futures trading volume is up 25% in a week, while Bitcoin’s is down nearly 5%. It’s another sign of momentum rotating from Bitcoin to ETH.

Low Funding Rate Says It’s Not Hype Yet

Even with all this ETH activity, the funding rate, which tells us if traders are too bullish or bearish, remains very low at 0.0091%. That’s important.

A high funding rate usually means too many people are betting in the same direction (often long), and it can lead to a price drop due to over-leverage.

But Ethereum’s low funding rate means the rally is spot-driven (real buying) and not just hype from leveraged bets.

Simply put, the demand seems healthy, not overheated.

Liquidation Map Shows Bullish but Cautious Setup

The Bitget liquidation map gives us a sneak peek into where traders might get forced out of their positions.

Right now, ETH has about $6.79 billion in long positions amid bets that the price will go up, compared to $2.77 billion in shorts.

That’s a 2.45x imbalance favoring the bulls.

It shows most traders believe ETH will go higher, but if the price drops sharply, a lot of those long positions could get liquidated. That’s what we call a “top-heavy” market. It’s strong, but vulnerable.

If ETH can stay above key support levels, those longs remain safe. But if it drops, the liquidations could cause a fast dump.

Ethereum’s Relationship With Bitcoin Is Breaking Pattern

One key chart shows ETH’s performance compared to BTC. Normally, when Bitcoin leads, ETH follows. But now, Ethereum is moving on its own.

The ETH/BTC price ratio is starting to rise again. That’s a sign that Ethereum isn’t just tagging along; it’s leading the narrative. The chart also shows that ETH is gaining traction even when BTC is range-bound.

This matters because it could attract more capital. Traders want momentum.

If ETH shows more upside while BTC stays flat, we could see even more money rotate into ETH, especially from altcoin traders and funds looking to front-run the next move.

Ethereum Price Analysis: $4,000 Is the Next Major Test

Ethereum is now hovering around $3,900–$4,000, a major resistance zone. A clean breakout above $4,000 or $3,913 to be exact could trigger a quick move to $4,200–$4,300, based on Fibonacci levels.

But if ETH fails to break $4,000 soon, we could see a quick dip back toward $3,750, where a lot of previous support sits.

Watch that $4,000 line closely. If bulls break it with volume, Ethereum could steal the spotlight from Bitcoin.

Traders are clearly rotating from Bitcoin to Ethereum. Open interest, volume, and price action all point to ETH building steam.

But with a top-heavy long setup and resistance at $4,000, the next few days could decide whether this breakout sticks or fizzles.