With recovery uncertain and BTC capital flow slowing, Ethereum’s long-term price action is in question.
- Ethereum failed to flip the $3.9K price into support, dipping 14% below that level. Concerns grow over Ethereum’s long-term price action.
The crypto market is in ‘extreme’ volatility, and Ethereum [ETH] is the perfect example. After a 37% drop following Trump’s pro-tariff stance, it soared after Eric Trump’s pro-ETH post. Two massive swings in four days.
The stakes are high
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Ethereum is up just 15% from its election day opening but is still 30% below its $4,016 peak during the Trump rally.
In the past week, ETH broke its support zone, falling below $2,800, three times the drop of Bitcoin. Despite the RSI hitting oversold and OBV showing signs of life, the steep decline wiped out over 14% of its gains, pushing 6.18 million addresses into the red.
Why? Trump’s tough economic policies triggered the biggest 24-hour crypto liquidation ever, wiping out $10 billion in one blow. But it didn’t stop there.
The ETH/BTC pair hit a four-year low, with daily declines over 3%. With little capital flowing from BTC into ETH, Ethereum’s future price action is looking more uncertain by the day.
Source: TradingView
Meanwhile, mid-caps are dominating the weekly gainer’s chart, with DEXE leading the way with a 44% gain. Investors are shifting away from high-caps, either exiting the cycle or moving funds into smaller assets.
So, is Ethereum’s recent dip just a temporary setback, or will the growing lack of confidence prevent it from breaking the $4,000 resistance?
Ethereum’s future unfolded
ETH ETFs have been on a strong run, with a four-day streak and a record $307.8 million in inflows in just one day—the highest this year. Blackrock’s ETHA alone pulled in a massive $276.2 million.
This institutional buying is key to keeping ETH from falling below $2,745. At this level, 4.26 million ETH would be in the red, risking an $11 billion sell-off—something to keep an eye on in the coming days.
Source: IntoTheBlock
With a strong market rebound still nowhere in sight, inflation teetering, and investor sentiment cooling on Ethereum during these volatile times, if ETF inflows falter, ETH could lose the remaining 15% from the election day rally last year.
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And as for breaking $4,000? The conditions above will need to shift. Until then, hold tight – the stakes for Ethereum are higher than ever.
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