- Ethereum’s 6% drop raises concerns, but market remains bullish.
- Analyst Crypto Rand highlights Ethereum’s 220% surge despite recent decline.
- On-chain data signals strong Ethereum holder confidence amid short-term dip.
Ethereum’s recent 6% drop to nearly $4,400 has left investors questioning if the cryptocurrency market is on the verge of a larger shakeup. This sharp decline, following a volatile August, has sparked fear across the market. Nevertheless, a few analysts hold that this decline is only a temporary reverse and not a reflection of a bigger problem.
Analyst Crypto Rand, known for his market insights, has noted that Ethereum has risen by a massive 220 percent in four months, reaching about $5,000. He says this latest retreat should not be interpreted as a show of weakness.
Instead, Ethereum’s rejection at the 2024 resistance zone, a level it has touched several times, is just its natural price action. As Crypto Rand suggests, the general market is bullish even though there are ups and downs.
Source: Crypto Rand
Also Read: Ripple’s RLUSD Stablecoin Joins the Top 100 Cryptocurrencies, Gaining Momentum
Ethereum’s On-Chain Data Indicates Strong Support
On-chain data further supports Ethereum’s positive outlook. According to Glassnode Ethereum’s MVRV (Market Value to Realized Value) ratio has hit 2.15, meaning that holders are currently holding on to large unrealized profits.
This is historically an indicator of investor confidence and a well-functioning market structure. Past comparable MVRVs indicate bull market periods, including March 2024 and December 2020. There is possible short-term profit-taking, but the long-term accumulation trend is intact.
Altcoins Awaiting the Next Big Catalyst
Meanwhile, the broader altcoin market, as seen in the TOTAL3 chart, is consolidating just below the $1.05 trillion resistance level. A significant breakout above this level may initiate a surge, and the price targets may be defined as $1.3 trillion, $1.49 trillion, and even $1.68 trillion.
The analysts opine that to make altcoins move, there must be a new institutional driver. This may be in the form of new ETFs involving such assets as Solana, XRP, or multi-asset crypto funds, which can become the impetus for the next significant market rally.
Ethereum’s 6% drop has raised some concerns, but experts agree that the overall market remains positioned for continued growth.
Also Read: Stock Exchanges Demand Urgent Action on Risky Tokenized Equities
