QCP: Market expectations indicate that Ethereum and Bitcoin will face pullback pressure around $4000 and $120,000 respectively.

BlockBeats news, on July 28, QCP released a daily market analysis report stating that Ethereum is gradually approaching the $4000 mark, a level it has not touched since December of last year. With the inflow of funds into spot Ethereum ETFs exceeding Bitcoin ETFs for seven consecutive days, market interest and speculation around ETH are intensifying. Considering that ETH's market capitalization is currently only one-fifth of BTC's, the threshold for attracting institutional and corporate funds is relatively lower, making it more sensitive to price movements. Despite ETH dominating most of the market headlines in recent weeks, Bitcoin has shown a quietly resilient strength. Even though the inflow of funds into spot BTC ETFs has slowed, the price movement remains robust. Last Friday, when a long-time holder sold 80,000 BTC, the market demonstrated strong support, with traders quickly buying the dips, and the brief rise in volatility was soon smoothed out. BTC's dominance remains around 60%, with almost no fluctuation over the past week, reflecting the market's long-term confidence in BTC as a value storage asset, rather than a complete rotation into the altcoin market. This also indicates that ETH and other mainstream coins still have room to compete for market share. In comparison, when ETH reached an all-time high in November 2021, BTC's dominance fell below 45%, while ETH was close to 20%. However, in the short term, the market's long positions are relatively crowded. The open interest for BTC and ETH perpetual contracts is close to a one-year high, reaching $45 billion and $28 billion, respectively; the funding rates on major exchanges also generally exceed 15%. Although it has not yet reached the level of "irrational exuberance" or extremely high liquidation risk, even a slight negative shock could trigger a chain reaction similar to what was seen last Friday. It is worth noting that some large investors have begun to take profits on their long positions. For example, a larger ETH 26SEP25 3.6k/4k/4.2k bullish call spread has been closed; at the same time, a large number of Bitcoin 8AUG25 $110,000 put options have been bought as a hedging strategy against short-term downside risk. From the option flow and the flattening of the risk reversal in the front-end term, the market expects that ETH and BTC will encounter some profit-taking pressure around $4000 and $120,000, respectively. However, against the backdrop of strong current momentum, powerful narratives, and supportive macro conditions, QCP believes that long-term holders and institutional investors will continue to "buy the dips," as observed last Friday.