Ethereum (ETH) has continued to climb near record highs while Bitcoin (BTC) struggles to hold its footing after dipping below $112,000.

The contrasting moves between the two largest cryptocurrencies have stirred debate across trading desks as investors weigh institutional inflows, whale rotations, and the Federal Reserve’s shifting policy stance.

Bitcoin surged past $117,000 late last week following dovish remarks from Federal Reserve Chair Jerome Powell at Jackson Hole.

Powell’s acknowledgement of risks in the US job market and a hint at a possible September rate cut briefly lifted risk appetite across global markets.

That optimism proved short-lived.

At the start of the new week, profit-taking quickly set in, pushing Bitcoin to its lowest level in six weeks.

By Monday morning in New York, BTC was trading around $111,610, nearly 3% lower on the session.

There seems to be tough resistance in the $114,000 to $117,000 band as the trigger for the pullback, with technical charts showing a series of lower highs and lower lows.

In addition, the selloff has raised questions, especially with signs of the Bitcoin price forming a potential double bottom near $110,000, which could set up the cryptocurrency for a deeper slide toward the $108,000 zone.

Notably, while a bullish reversal remains possible, the key test lies in reclaiming $114,500 with strong volume, a level that has repeatedly rejected recent rebounds.

In contrast to Bitcoin’s choppy moves, Ethereum has enjoyed a stronger trend backed by whale positioning and institutional activity.

On-chain data shows that a major address rotated thousands of BTC coins into ETH as Ethereum has steadily outperformed Bitcoin in recent weeks.

One whale in particular, who received 100,784 BTC (worth $642M) 7 years ago, recently ended his dormancy by selling BTC while buying 62,914 $ETH ($267M) spot and opening a massive 135,265 ETH ($577M) long position.

A Bitcoin OG who received 100,784 $BTC($642M) 7 years ago ended his dormancy recently— selling $BTC while buying 62,914 $ETH ($267M) spot and opening a massive 135,265 $ETH($577M) long position. We just spotted another Bitcoin OG depositing $BTC into #Hyperliquid to sell and buy

The profit highlights how large holders have managed to capitalise on Ethereum’s relative strength, boosting sentiment for the world’s second-largest cryptocurrency.

Institutional interest has also underpinned the market. MicroStrategy has disclosed the purchase of more than 3,000 BTC, worth roughly $357 million, bringing its total holdings to over 632,000 coins.

Although the buy reinforced long-term support for Bitcoin, it did little to halt the short-term correction.

By contrast, inflows into Ethereum-linked products and growing corporate allocations have kept ETH near record highs.

Bitcoin’s daily and four-hour charts show bearish momentum, with moving averages signalling downward pressure.

Oscillators remain weak, suggesting that sellers still control the near-term picture.

However, futures positioning and open interest data hint at growing speculative demand should the double bottom at $110,000 hold.

On the other hand, Ethereum’s outlook remains more constructive, though traders caution that the rally could face resistance if Bitcoin continues to falter.

For now, ETH has become the preferred rotation play among large investors, with whale flows and favourable ETH/BTC ratios reinforcing that trend.

The next major catalyst for both assets is likely to come from macro events, particularly the Federal Reserve’s policy path.

A confirmed rate cut in September could reignite demand for risk assets, providing Bitcoin the momentum it needs to break past $114,500.

Ethereum, already buoyed by strong flows, could extend its rally further in such an environment.

Until then, traders are watching Bitcoin’s $110,500 support and Ethereum’s ability to sustain bids near recent highs.

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