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

From "Kimchi Premium" to Bithumb's Rectification: An Interpretation of the Current Situation in the South Korean Crypto Market

How to Automate Your Workflow with AI (No Code Required)

Conversation with Pantera Founder: Bitcoin Has Reached Escape Velocity, Traditional Assets Are Being Left Behind

Is it still worth buying Circle on the callback?

BIT Launches Landmark "Same Name Virtual Account" Feature: Ushering in a New Era of OTC Trading that is Convenient, Efficient, and Compliant

Further Oracle Integration Reveals Polymarket's Ambitions

CoinGlass: 2026 Q1 Cryptocurrency Market Share Research Report

Tiger Research: Analysis of the Current Situation of Retail Investors in Nine Major Asian Markets

Forbes: Does quantum technology threaten the encryption industry? But it is more likely an opportunity

What Is Auto Earn? How To Claim Extra Free Crypto On Auto Earn 2026
What is Auto Earn and how do you use it? This guide explains how Auto Earn works and how balance increases and referrals may qualify for extra rewards during Auto Earn Boost Fest.

Auto Earn Compared 2026: Which Exchange Gives The Most Extra Bonus?
What is Auto Earn in crypto? Compare Kraken, OKX, Bybit, Binance, and WEEX Auto Earn features in 2026 and see which platforms provide additional promotional rewards beyond standard yield mechanisms.

Nearly $300M Targeting U.S. Midterm Elections, Tether Exec Leads Crypto Industry's Second-Largest Political Fund

Anthropic's Triple Moment: Code Leak, Government Standoff, and Weaponization

OpenAI and Anthropic both announced acquisitions on the same day, causing dual IPO anxiety.

Forbes: Quantum Technology Threatens the Crypto Industry? But It's More Likely an Opportunity

Rhythm X Zhihu Hong Kong Event Recruitment Skills, Register Now for a Chance to Showcase Live
CLARITY Act 2026 Update: Stablecoin Yield Ban, Senate Compromise, and What It Means for Crypto Markets
The CLARITY Act may reshape stablecoin yield rules, DeFi incentives, and crypto liquidity in 2026. Learn the latest Senate updates, timeline changes, and what the regulation could mean for crypto traders.

