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Ethereum $4,000 retest is now within reach as capital inflows and market sentiment tilt heavily in Ether’s favor.
With Ethereum leading the altcoin pack, recent market data reveals a strong capital rotation from Solana and Bitcoin toward Ether.
According to Glassnode, the SOL/ETH Hot Capital Ratio has declined sharply, hitting a yearly low of 0.045. This indicates a significant 42% drop since April, clearly highlighting investor preference for Ethereum. The ETH/SOL pair shows a long-term downtrend, further confirming Ethereum’s rising dominance in speculative capital movement.
Ether’s dominance signals bullish shift
Adding to the bullish case, the ETH/BTC trading pair recently broke above its 200-day exponential moving average. This is the first time in over two years the pair has moved beyond this level, indicating renewed market strength. Bitcoin, meanwhile, faces repeated resistance at the $116,000 mark.
At the same time, Ethereum’s open interest (OI) in futures markets has reached an all-time high of $58 billion. This surge demonstrates growing investor engagement and heightened speculation around a potential Ethereum $4,000 retest.
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Ethereum $4,000 retest driven by strong fundamentals
Ethereum’s total OI market share has grown to 34.8%, while Bitcoin’s has declined from 59.3% to 47.1%. Ethereum is also seeing record-high daily transaction volumes. This increased activity confirms strong user participation and robust on-chain fundamentals.
Funding rates remain moderate compared to earlier spikes in March and December 2024, signaling a more sustainable rally. Low funding rates suggest minimal over-leveraging, decreasing the risk of sudden market corrections. This is a healthy indicator for further price growth.
Unlike previous attempts to breach the $4,000 level, this move appears to be spot-driven. Analysts attribute this shift to demand from Ether treasury companies and longer-term investors. Ethereum’s recent 9.72% correction has already been countered by a 9% rebound, bringing it back near the $3,800 level.
$4,000 remains key psychological resistance
Ethereum $4,000 retest is now a question of when, not if, according to many analysts. Crypto strategist Jelle called the level “resistance since forever.” With capital rotation, network growth, and subdued funding rates, Ethereum may finally break through and hold.
