10x Research is warning that Ethereum (ETH) could continue to fall as institutional funds move toward Bitcoin.
10x Research has raised worries about Ethereum’s market position, as Bitcoin continues to draw most institutional capital.
The firm’s analysts believe that shorting Ether may help investors hedge against Bitcoin exposure during uncertain times.
Ethereum has lost over 20% lately, similar to the October 10 crash that erased billions in market value. As Bitcoin continues to be the preferred asset for big investors, Ether seems to be struggling to hold its ground.
Ether Faces Pressure as Bitcoin Dominates
10x Research said institutional funds are heavily favouring Bitcoin while Ethereum-focused companies are facing a cash shortage. That change could expose Ether to further weakness, especially after the recent liquidation wave.
According to the report, Ethereum’s “digital asset treasury” narrative once encouraged large firms to accumulate ETH before distributing it to retail buyers.
This cycle fueled past rallies, but now seems to be breaking down. A lack of transparency around private investment in public equity deals and uncertain capital inflows are also clouding the outlook.
10x Research pointed out BitMine as a major example. The firm accumulated Ether at market value and later sold it to retail buyers at higher prices. This reinforced a feedback loop that boosted ETH.
Now, that loop appears to have stalled.
The analyst said that technical signs confirm the weakness. Ether’s weekly stochastic indicator is showing a topping pattern while a multi-year wedge formation shows a false breakout.
If support near $3,000 fails, Ether could drop to about $2,700.
Bitcoin Hedge Through Ether Short
The firm’s founder, Markus Thielen, said shorting Ether might be an effective hedge for Bitcoin holders. He explained that Bitcoin continues to receive inflows from institutional investors, while Ether demand from funds and retail buyers has dried up.
Thielen warned that Ether’s latest breakdown leaves little support ahead.
The absence of strong buying interest could push prices lower. He added that the range between $2,700 and $2,800 may become the next key zone if selling continues.
Bitcoin has established itself as the default choice for corporate treasuries and funds. Its limited supply and other features are now making it more attractive than Ether, which still faces challenges around transparency and scalability.
Ether’s Market Struggles Deepen
Over the past two days, Ether’s decline has erased almost $1 billion in leveraged positions according to CoinGlass data.
Most of those liquidations came from traders who were betting on rising prices. The losses came as Ether’s price fell from near $4,000 to below $3,000 in less than 48 hours.
ETH was recently trading just above $3,200 after a modest rebound and is still down about 9% in 24 hours.
Analysts believe the correction could continue if market sentiment fails to recover.
Many traders had used high leverage to bet on Ethereum’s rebound after the October crash. When prices fell again, those positions were automatically closed and leading to a cascade of liquidations.
Ethereum Treasury Firms Show Strain
10x Research found that 15 Ethereum-focused treasury companies currently hold about 4.7 million ETH in total. BitMine is the largest with nearly 3.3 million ETH, followed by SharpLink and Bit Digital.
Despite holding massive reserves, these firms seem to be running out of buying power. Thielen said BitMine appears “fully tapped out,” with limited capacity to purchase more ETH.
The firm’s estimated average cost is around $3,909, which means that it now sits on about $2 billion in unrealised losses.
That situation creates worry for the market. If major holders are unable or unwilling to add to their positions, Ether could lose another layer of support.
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