Whale selling 16 million USD ETH to Bitcoin, but ETH/BTC support remains stable.

Recently, the market has shown signs of capital rotation. A Whale exchanged Ethereum (ETH) worth 16 million USD for Wrapped Bitcoin (WBTC), and some institutional investors also withdrew ETH worth 38 million USD. However, despite the rising selling pressure, the ETH/BTC Exchange Rate still holds the key support level at 0.037, indicating that the structural strength of Ethereum has not yet been broken.

Whales and Institutional Funds Shift to BTC

On-chain data shows that a large holder exchanged 3,900 ETH (approximately 16.26 million USD) for 143.26 WBTC at a price of 0.03673, reflecting that capital is partially flowing into Bitcoin.

At the same time, there is a divergence in institutional funds: some large institutional addresses withdrew $38 million worth of ETH from a certain CEX exchange, while another group of institutions chose to buy the dip, extracting large amounts of ETH from FalconX.

ETH/BTC Exchange Rate remains strong

(ETH/BTC price chart, source: Trading View)

Despite the funds rotating into BTC, the ETH/BTC Exchange Rate remains stable at the 0.037 level, above the long-term support level of 0.033. The recent high of 0.039 suggests that this trading pair still has the potential to push up towards 0.040.

Since hitting a low of 0.025 in April, ETH/BTC has consistently created higher lows and higher highs, maintaining a bullish structure, which contrasts with the traditional view that "a crash in ETH/BTC signals the end of the altcoin season."

Institution and Retail Investor Position Changes

(Source: CryptoQuant)

CryptoQuant data shows that retail holdings have dropped to 8.6 million ETH, while large investors' holdings have risen to 10.8 million ETH.

This structural change means that, although the selling pressure in the short term comes from some institutions and retail investors, long-term capital is still accumulating ETH. Historically, institutions often sell high and buy back low to flush out short-term investors.

Price Outlook and Market Sentiment

In the short term, the trend of ETH will depend on whether it can hold the ETH/BTC support level at 0.037 and the risk appetite of the macro market. If the support is lost, it may trigger more funds to shift towards BTC; however, if it stabilizes and breaks through 0.040, it may reignite the altcoin season.

Market observers indicate that the current capital rotation resembles a structural adjustment rather than a signal of a full shift towards BTC.

Conclusion

Although whales and some institutional funds have shifted to Bitcoin in the short term, the stability of the ETH/BTC exchange rate indicates that Ethereum's medium to long-term structure remains resilient. Investors should pay attention to changes in institutional holdings and key exchange rate support levels, as this will determine whether the altcoin market can continue its rebound. For more real-time market data and on-chain analysis, please follow the official Gate platform.