10x Research sees shorting Ether as a Bitcoin hedge

A recent report from 10x Research argues that shorting Ether (ETH) could serve as a strategic hedge against Bitcoin (BTC) because Bitcoin remains the primary recipient of institutional treasury capital, while Ethereum exhibits structural weaknesses. The analysts noted that narratives around 'digital asset treasury' previously encouraged institutions to accumulate ETH and distribute it to retail investors at a premium, a pattern that is now breaking down due to opaque private investment disclosures and uncertain capital flows. The report cited treasury company BitMine as an example of this distribution mechanism. Furthermore, technical indicators suggest potential downside for ETH, with support near $3,000 potentially failing, leading to a drop toward $2,700, as weekly stochastics show a topping pattern and a multi-year wedge formation indicates a false breakout. Despite these risks and waning spot ETF demand, some ETH treasury companies, like BitMine led by Tom Lee, remain bullish on long-term price targets.

(Source：Cointelegraph)