Ethereum at Risk of Decline as Institutional Investors Flock to Bitcoin
10x Research has released a report highlighting Ethereum's (ETH) potential vulnerabilities as Bitcoin (BTC) continues to dominate institutional investment. The analysis suggests that ETH is at risk of decline, with technical indicators flashing topping signals and a multi-year wedge formation revealing a false breakout.
The report points out that 15 digital asset treasury companies hold a combined 4.7 million ETH, with BitMine holding approximately 3.3 million ETH on its balance sheet. Despite this, the price of Ethereum has struggled to regain momentum after the Oct. 10 crash, which eliminated $19 billion in crypto positions.
Tom Lee, chair of BitMine, remains bullish on Ethereum's potential, predicting a price of $10,000 by the end of the year. However, analysts are cautioning that institutional investors are rotating away from ETH and towards BTC, creating opportunities for sophisticated investors to profit from anticipated declines.