Analysis: Ethereum's new highs highlight a shift in momentum, while the surge in market leverage raises concerns about a bull tail.

BlockBeats news, on August 27, K33 research director Vetle Lunde stated that a long-term holder exchanged 22,400 BTC for ETH, driving Ethereum to a new all-time high last week, highlighting a shift in market momentum. However, Bitcoin’s recent price weakness may not yet be over, as the surge in leverage and significant rotation of funds towards Ethereum continues to put pressure on it in the short term. The nominal open interest (OI) of Bitcoin perpetual futures surged to a two-year high, exceeding 310,000 BTC (approximately $34 billion), increasing by 41,607 BTC over the past two months, with a spike of 13,472 BTC over the past weekend, marking a potential turning point. The annualized funding rate of Bitcoin jumped from 3% to nearly 11%, indicating an increasingly aggressive long position during a relatively stagnant price period. Lunde noted that the current situation is similar to the leverage accumulation seen in the summer of 2023 and 2024, both of which triggered significant liquidation waterfalls in August. This OI peak occurs later in the month, suggesting that the market may enter a longer consolidation period, and buy-the-dip buyers may become trapped. Lunde warned: "The risk of a long position squeeze is high in the short term, and it is advisable to maintain a conservative position until the market clears excess leverage. Historically, Ethereum reaching an all-time high often marks the overall top of the crypto market, as seen in the 2017 and 2021 cycles: Ethereum breaks out, other crypto assets surge, and Bitcoin stagnates due to weakening demand, raising concerns about the bull run nearing its end. However, Bitcoin’s market dominance remains high at 58.6%, well above the previous peak of less than 40%. As Ethereum matures with relative strength, traders are watching whether this cycle will follow historical patterns or completely diverge.