BTC Whales Move to ETH as Traders Predict Ethereum Could Hit $5,500

Bitcoin whales are increasing their Ethereum holdings as market attention shifts from BTC to ETH, after the largest altcoin just set a new all-time high.

Highlights:

• Bitcoin approaches weekly close with $114,000 in focus, amid weakening weekend momentum.
• Ethereum is in the spotlight after setting a new high, as many whales swap BTC for ETH.
• BTC price action is supported by an upward CME Futures gap, providing a new short-term target.

ETH 's price surge takes the spotlight while Bitcoin moves sideways

Data shows that the BTC/USD pair is gradually moving towards the $114,000 region. The pair has been relatively flat over the weekend after a strong bounce on Friday to nearly $117,500 on external news. The reason was a speech by the US Federal Reserve Chairman Jerome Powell at the annual Jackson Hole economic conference, where he hinted that interest rate cuts could resume in September.

The Crypto market has surged along with other risk assets, with the largest altcoin Ethereum (ETH) even setting a new historical high at $4,736.

“$ETH is attempting to close the weekly candle above $4,600. This would be a major confirmation signal that the market is not in a Bull Trap,” Chia popular trader BitBull in his latest analysis on X. “If ETH closes the weekly candle above $4,600, it would be the highest weekly candle close ever. At the same time, it would open the way for further upside towards $5,200-$5,500 next week.”

Citing data from blockchain analytics firm Arkham, the Lookonchain analytics account on X has recorded multiple transactions showing that long-dormant BTC is being swapped for ETH. Trader BitBull described whale demand for ETH as “very strong.”

“Despite ETH being up over 300% in just 4 months, whales are showing no signs of slowing down,” he commented in another post on X. “It looks like this rally isn’t over yet.”

Ethereum and Bitcoin Face New Series of CME Gaps

Elsewhere, prominent trader and analyst Rekt Capital noted that ETH/USD has filled an open gap in CME Group’s Ether Futures Contract market. Meanwhile, for Bitcoin, the gap formed by the weekend’s price action is in sight.

“$ BTC had a quiet weekend, which is understandable after the big market bounce on Friday. If BTC opens tomorrow in the same situation as it is now, we will see a pretty big gap,” said trader Daan Crypto Trades.

Last week, Rekt Capital called $114,000 a “pivotal” level for Bitcoin based on the weekly candle close.

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