10x Research indicates that as Bitcoin increasingly attracts treasury capital from institutions, Ethereum may face fundamental issues, positioning ETH as a strong candidate for shorting amidst cautious market conditions.

The key insight from a recent 10x Research report suggests that shorting Ether (ETH) could be a prudent hedge against Bitcoin (BTC).

Bitcoin is currently the main focus of institutional investment, while Ether reveals vulnerabilities. Analysts assert that the narrative surrounding “digital asset treasury” associated with Ethereum has seen institutions hoarding ETH only to distribute them to retail investors, leading to a breakdown in this pattern due to lack of transparency in private equity investment and unpredictable capital movements.

10x Research highlighted the case of treasury firm BitMine, explaining how their strategy enabled institutional players to gather ETH affordably before selling it at a premium to retail investors, a feedback loop that inflated prices.

Indicators also warn that Ether’s price could plummet sharply if it breaks below a support level around $3,000, with projections suggesting a fall to approximately $2,700.

Ether indication According to the researchers, Ether’s weekly stochastic indicator is flashing topping signs. Source: 10x Research

“As we also noted, the weekly stochastics are flashing a clear topping pattern, while the multi-year wedge formation has revealed a false breakout, mirroring the false breakdown seen back in March 2025,” the researchers commented.

ETH treasury firms maintain positive outlook despite market challenges

At the moment, there are 15 Ethereum-focused digital asset treasury firms that collectively manage 4.7 million ETH. Among these, BitMine stands out as the largest, holding approximately 3.3 million ETH, followed by SharpLink with about 859,853 ETH, and Bit Digital, possessing 150,244 ETH.

ETH treasury leaderboard
ETH treasury leaderboard. Source: CoinGecko

In spite of recent fluctuations in the Ether market, including diminishing demand from US spot exchange-traded funds (ETFs), BitMine chair Tom Lee remains optimistic. Last month, Lee maintained his belief that Ether’s price could approach $10,000 this year, arguing that the asset has been steadily building a solid foundation since 2021.

Nevertheless, the market remains cautious following the crash on October 10 that caused a staggering $19 billion in liquidations, marking the largest liquidation event on record. Since that event, both Ether and the broader digital asset sector have had difficulty regaining their previous momentum.

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