Ethereum’s Price Plunge: Is It a Bargain or Just a Bad Joke? 😂

by

TL;DR

  • One illustrious trader, with the audacity of a cat on a hot tin roof, sees Ethereum’s dip to around $1,800 as a golden opportunity, while the market’s fear echoes the sage words of Warren Buffett: be greedy when others are quaking in their boots.
  • Yet, despite the optimism that could make a sunflower blush, Ethereum faces headwinds so strong they could blow a house down, possibly leading to a further price nosedive in the near future.

Is This the Moment to Buy?

Ah, Ethereum (ETH), that fickle mistress! It has been on a downward spiral, plummeting over 20% in the last thirty days, as if it were auditioning for a tragic play. Yet, some brave souls, or perhaps just the overly optimistic, see this as the perfect moment to pounce like a cat on a laser dot.

The illustrious X user, Doctor Profit, with nearly 400,000 followers—who surely hang on his every word like moths to a flame—proclaimed that he increased his exposure to this digital asset when it was trading at a mere $1,800. He even had the audacity to call the current conditions “a gift for the long term.” A gift? More like a riddle wrapped in a mystery inside an enigma!

He revealed, with the flair of a magician, that he used 10% of his available cash for this purchase, while the remaining 90% is tucked away like a squirrel hoarding nuts for winter, “to add more in the coming days.”

“I buy once the streets are filled with blood; now is a good time,” he declared, as if he were a general rallying his troops for battle.

It may seem terrifying, but some renowned investors, those wise owls of the financial forest, have actually recommended such actions in times of fear. The legendary Warren Buffett once quipped, “Be fearful when others are greedy and greedy when others are fearful.” A delightful paradox, isn’t it?

Shortly after his grand announcement, Doctor Profit claimed that the price of the cryptocurrency was lounging at a historical support level of around $1,800. How quaint!

“The same support I mentioned several months ago, now we’ve dumped to this area! With this massive correction and fear, we are perfectly sitting at this support! Undervalued now,” he argued, as if he were a philosopher pondering the meaning of life.

What About a Deeper Correction?

But lo and behold! Just hours after the aforementioned proclamation, ETH dipped below the fabled level and now trades at around $1,770. The entire cryptocurrency market, like a flock of startled pigeons, experienced another retreat following China’s reaction to Donald Trump’s latest trade tariffs. Oh, the drama!

Full-scale tariff war?

China hits ALL U.S. imports with 34% tariffs.

Nasdaq 100 futures nosedive 600+ points. Crypto felt it too.

— CryptoPotato Official (@Crypto_Potato) April 4, 2025

Several other factors, like ETH’s exchange netflow, suggest that this cryptocurrency might continue to bleed like a wounded animal in the short term. According to CryptoQuant data, inflows have surpassed outflows over the past week, signaling that investors are moving from self-custody to centralized platforms, thereby increasing immediate selling pressure. A delightful game of musical chairs!

The analytics firm recently estimated that the diminished network activity is one of the major reasons why ETH has been as disappointing as a soggy biscuit. This decline, combined with the plummeting average fees per transaction and per block, has pushed Ethereum’s burn rate to its lowest level since the Merge (September 2022). CryptoQuant estimated that since the Dencun upgrade last year, more ETH has been minted than burned, which explains the slump. A veritable feast of digital currency!

The retreat of the whales, those great leviathans of the crypto sea, is another worrying element that indicates more pain for the bulls. The renowned analyst Ali Martinez claimed that the number of large ETH transactions tanked by almost 64% from February 25 to March 31, signaling a substantial drop in whale activity. Additionally, large investors offloaded 760,000 ETH (worth over $1.3 billion) in the past two weeks alone. A veritable exodus!

Such sell-offs increase the circulating supply of the asset and could negatively impact its price (assuming demand doesn’t react accordingly). In addition, the whales’ actions may spread panic across the space, with smaller players following suit like sheep to the slaughter. Oh, the irony!

Read More

2025-04-04 16:44