A new report from 10x Research has positioned Ethereum as a potential shorting opportunity for investors seeking to hedge their exposure to Bitcoin, highlighting growing structural divides between the two largest cryptocurrencies. As Bitcoin continues to attract the majority of institutional capital, Ethereum appears to be losing ground among big investors, raising questions about its long-term competitiveness in the digital asset market.
The report argues that Bitcoin’s dominance in institutional treasuries is widening, while Ethereum-focused firms are running low on liquidity. Analysts suggested that “digital asset treasury” narratives—once used to drive institutional accumulation of ETH—are faltering. According to 10x Research, these companies, including notable examples like BitMine, had previously enabled large investors to buy Ether at base value and resell it to retail buyers at higher prices. This cycle, the analysts said, helped inflate Ethereum’s value but is now breaking down amid a lack of transparency in private investment disclosures and weaker market demand.
Citing BitMine’s activity, 10x Research described how such treasury models fueled a feedback loop that sustained price growth during bullish periods. However, with capital inflows drying up and investor sentiment cooling, the researchers believe Ether could face sharper downside risks. Technically, the report notes that Ether’s weekly stochastic indicator is showing a clear “topping pattern,” suggesting that a failure to hold above the $3,000 mark could push prices toward $2,700.
At press time, Ether trades around $3,340, while Bitcoin remains near $100,573, reflecting a growing divergence in investor confidence. The analysts likened Ethereum’s current pattern to its false breakout in March 2025, warning that this setup could mark the start of a deeper correction if institutional demand fails to recover.
Despite these bearish signals, Ethereum treasury firms remain largely optimistic. Data shows that 15 Ether-focused digital asset treasuries collectively hold about 4.7 million ETH, with BitMine accounting for the bulk—around 3.3 million ETH—followed by SharpLink with 859,853 ETH and Bit Digital with 150,244 ETH.
BitMine chair Tom Lee, a long-time Ethereum bull, continues to project significant upside, maintaining that ETH could still hit $10,000 before year-end. He claims the asset has been forming a strong base since 2021, positioning it for long-term gains once broader market stability returns.
Still, market caution has intensified since the October 10 crash that erased roughly $19 billion in crypto positions—the largest single-day liquidation in the sector’s history. With ETF demand cooling and trading volumes thinning, analysts say Ethereum’s short-term trajectory will depend heavily on whether institutional capital re-enters the market or continues to consolidate around Bitcoin.
