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Cryptocurrency Market Sentiment

Ethereum Price Is Not Going To Keep Falling Forever, Analyst Says

Ethereum Price Is Not Going To Keep Falling Forever, Analyst Says

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Ethereum’s sharp decline below $2,000 has triggered widespread concern across the crypto market, dragging major altcoins lower and intensifying bearish sentiment. Yet according to prominent blockchain analyst ChainHub, the recent ethereum price action signals exhaustion rather than continued weakness, with technical structures suggesting a potential reversal may be approaching.

The Ethereum Market Context

Ethereum’s current predicament reflects broader dynamics within the cryptocurrency ecosystem. As the leading smart contract platform, Ethereum’s price movements carry disproportionate weight across the altcoin market, influencing investor sentiment toward decentralized finance (DeFi), layer-2 scaling solutions, and token-based applications. The second-largest cryptocurrency by market capitalization has historically served as a barometer for risk appetite in blockchain markets beyond Bitcoin.

The recent decline has sparked renewed discussion about Ethereum’s competitive positioning relative to emerging layer-1 blockchains and the sustainability of its current fee structure. Network activity metrics and transaction volumes have remained resilient despite price weakness, suggesting that fundamental utility has not deteriorated alongside valuations. This disconnect between price action and on-chain activity represents a critical distinction for long-term investors assessing whether current levels represent genuine capitulation or temporary profit-taking.

Technical Structure Remains Intact

Despite the severity of Ethereum’s recent pullback, ChainHub emphasized that the ETH/BTC trading pair has maintained its technical validity. The pair has not experienced any structural breakdown that would suggest further deterioration is inevitable.

The analyst noted that while Ethereum has fallen further than many traders anticipated, the decline does not necessarily indicate indefinite downward pressure. Price action that breaks lower often precedes major reversals, particularly when fear metrics reach extreme levels.

After massive fear and massive downside comes massive upside.

— ChainHub, Crypto Analyst

ChainHub identified $2,000 as a psychologically important level, but highlighted $1,700 as the next significant technical zone. This area aligns with a broader corrective structure that could prove attractive to buyers. Importantly, Ethereum may not need to reach $1,700 before recovering—price discovery in that region would represent a meaningful demand zone where accumulation typically resumes.

KEY LEVEL

The $1,700 support zone represents a technically consistent area within a broader corrective structure where buyers may begin reasserting control.

Bitcoin Setting the Foundation

The analyst connected Ethereum’s outlook to broader market conditions, particularly Bitcoin‘s recent price action. Bitcoin’s rejection at $72,000 has opened the possibility of a retest into the upper portion of the summer 2024 demand zone, which spans approximately $59,000 to $49,000.

ChainHub pointed out that this represents the first significant interaction with that demand area since 2025 began. Fibonacci alignment clustering around $57,000 to $58,000 increases the probability that Bitcoin is currently establishing a foundational base—a technical pattern that typically precedes sustained recoveries.

The formation of a stable base in Bitcoin generally signals that other assets may also be approaching turning points. This interconnected market behavior suggests that altcoin weakness may be temporary rather than structural. Bitcoin’s dominance index and correlation patterns with Ethereum will likely determine the speed and magnitude of any altcoin recovery, making Bitcoin’s stabilization a prerequisite for broader market health.

Market Structure and Institutional Implications

The current market environment reflects evolving institutional participation in cryptocurrency markets. Spot Bitcoin ETFs and Ethereum ETF approvals have introduced new categories of investors with different time horizons and risk tolerances than traditional crypto traders. This structural shift affects how price discoveries occur and how quickly reversals can establish sustainable footing.

Institutional accumulation patterns during fearful market phases differ meaningfully from retail behavior. Large-scale buyers typically enter gradually during extended weakness, creating firmer support bases that resist immediate reversals. The current technical setup—with multiple assets testing August 2024 lows simultaneously—suggests conditions potentially attractive to patient capital with longer investment horizons.

Altcoins Finding Support

Multiple major altcoins are simultaneously testing critical demand levels that have historically attracted buyers. Solana recently broke below $100 for the first time since January 2024, reaching lows near $75—marking the first meaningful demand test in approximately two years.

Similarly, Dogecoin, Cardano, and Avalanche have all revisited August 2024 lows while simultaneously filling prior downward wicks. These technical patterns suggest that sellers have finally exhausted initial selling pressure at specific price levels. The synchronization of support testing across major altcoins is statistically notable, as it indicates market-wide capitulation rather than isolated weakness in individual projects.

MARKET OBSERVATION

Solana, Dogecoin, Cardano, and Avalanche have all touched August 2024 demand zones, indicating that major altcoins are simultaneously testing critical support levels across the market.

ChainHub acknowledged that limited downside remains possible for some assets. However, the analyst expects the broader market to begin consolidating into a trading range in the coming weeks, followed by a gradual accumulation of bullish momentum. This consolidation phase would represent a healthier foundation for sustained recovery compared to immediate V-shaped reversals, which often lack conviction and retrace quickly.

Fear as a Contrarian Indicator

A notable aspect of ChainHub’s analysis involves the extreme fear currently visible in market sentiment. Fear indices have climbed to levels rarely observed historically, and such environments have consistently appeared near major turning points in past cycles.

Market psychology plays a crucial role in price reversals. When fear reaches extremes, it often indicates that weak hands have already exited positions, leaving the market structure cleaner for new buyers to accumulate at lower prices. Behavioral finance research demonstrates that capitulation phases—where emotional selling exhausts itself—frequently precede rebounds with significant upside potential.

The combination of technical support levels being tested, extreme fear readings, and synchronized demand zones across multiple assets creates conditions that historically have preceded meaningful recoveries. While timing remains uncertain, the setup suggests the market may be closer to stabilization than continued decline.

Broader Industry Implications

The current market environment carries implications for the entire blockchain and cryptocurrency industry. Developer activity, project funding, and venture capital deployment often correlate with sentiment cycles. Extended bear phases create opportunities for projects with genuine technological progress to accumulate capital and talent at favorable rates, potentially strengthening the competitive landscape long-term.

Regulatory developments and macroeconomic factors will likely influence the timeline for recovery. However, technical structures alone suggest that current prices have approached levels where supply-demand dynamics favor buyers over sellers. Market participants should monitor on-chain metrics, institutional flows, and technical pattern confirmations to validate whether technical bottoms translate into sustained price recovery.

Investors monitoring crypto prices should recognize that temporary weakness does not invalidate longer-term technical structures. The current environment, though uncomfortable, may represent a necessary cleansing before the next phase of market strength emerges. Historical precedent suggests that markets reaching extreme fear conditions frequently establish foundation bases that support multi-month recovery cycles, provided that fundamental utility factors remain intact across major blockchain platforms.

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Bitcoin Supply In Profit Stalls At 71%: Still Not Enough For A Sustainable Recovery

Bitcoin Supply In Profit Stalls At 71%: Still Not Enough For A Sustainable Recovery

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Bitcoin is testing critical support levels as market participants grapple with a fundamental question: whether current conditions can sustain a recovery. The cryptocurrency has struggled to establish confidence around the $90,000 zone, with price action remaining volatile and investor sentiment fragile. According to analyst commentary, a key metric—bitcoin supply in profit—sits at approximately 71%, significantly below the threshold many consider necessary for a durable uptrend.

Industry Context: Understanding Bitcoin’s Market Maturity

The cryptocurrency market has evolved substantially since Bitcoin’s inception in 2009. Today, institutional investors, hedge funds, and traditional asset managers represent a significant portion of trading volume and holdings. This structural change has transformed how price movements propagate through markets and how metrics like supply-in-profit translate into actionable market signals.

The $90,000 price level carries particular significance within this evolved ecosystem. Major institutional investors established substantial positions during the 2020-2021 bull market, and many have rebalanced or taken profits near recent highs. The current consolidation reflects this mixed positioning: institutions managing risk alongside retail investors attempting to catch bounces creates a fragmented market structure prone to rejection at key technical levels.

Regulatory developments across jurisdictions have also influenced current market dynamics. The approval of Bitcoin spot exchange-traded funds in the United States and discussions around potential strategic reserves have created new institutional pathways into Bitcoin exposure. However, these same developments have brought traditional market dynamics—including profit-taking cycles and mean-reversion behavior—that were previously less prevalent in cryptocurrency markets.

The Profit Distribution Problem

When evaluating market structure, the proportion of Bitcoin holders sitting in positive territory matters more than many realize. This metric reveals whether the market has enough comfortable participants to absorb selling pressure without triggering cascading liquidations or panic exits.

Currently, with supply in profit hovering near 71%, the market lacks the foundation typically associated with sustained bull markets. This reading has declined from earlier peaks and represents a level historically observed during the early phases of bear markets. The distinction is important: even modest headline declines can push large cohorts of recent purchasers underwater.

When unrealized gains become extreme across the entire market, they can eventually turn into overhead supply, triggering corrective phases.

— Analyst Commentary

The recent correction—roughly 31% from local highs near $125,000—accomplished precisely this. Many participants who entered late in the rally now hold positions at a loss, creating psychological pressure to exit at the first opportunity for recovery.

Key Metric

Supply in profit at 71% is below the historical 75% threshold where Bitcoin tends to stabilize bullish conditions. Readings this low have frequently appeared near bear market starts.

Why Profit Dynamics Matter for Market Health

In healthy market conditions, when most holders are in profit, behavior patterns shift measurably. Investors experience reduced urgency to sell, panic subsides, and holding through normal volatility becomes psychologically easier. This environment typically supports stronger trend development and reduces vulnerability to sharp downside reactions.

However, profit distribution operates as a double-edged sword. When supply in profit climbs above 95% toward 100%, unrealized gains transition from supportive to problematic. At extreme levels, investors have minimal incentive to maintain positions through volatility, and even modest shocks can trigger profit-taking waves that fuel corrective moves.

The ideal range appears to be 75% to 85%. This window suggests the majority hold comfortable positions while avoiding the overhead pressure that extreme readings create. Bitcoin’s current position at 71% falls short of this structural comfort zone.

Market Structure Analysis

Bounce Rejection and What It Signals

A recent rebound briefly lifted supply in profit back toward 75%, suggesting a potential recovery in progress. The bounce, however, failed to hold at that level. This rejection carries important information about market participants’ true conviction.

When bounces fail precisely at key thresholds, it often reflects opportunistic selling rather than emerging buying interest. Investors underwater or at breakeven may have used the rebound as an exit point to reduce losses or escape entirely. Such behavior is typical when confidence remains fragile.

The rejection of the 75% level likely reflects investors using the bounce to exit at breakeven or reduce losses.

— Market Structure Analysis

Moving forward, the market faces two competing scenarios. Reclaiming and holding the 75% to 80% range would signal stabilization and a return to more comfortable positioning. Conversely, further weakness could amplify panic-driven selling as underwater holders capitulate, potentially pushing the metric even lower.

Historical Context

Previous bear market entries have coincided with supply-in-profit readings near 64%. Current levels at 71% represent improvement, but still below the 75% threshold associated with sustained bullish conditions.

Market Implications for Risk Assets Broadly

Bitcoin’s current struggle carries implications extending beyond cryptocurrency into broader risk asset markets. Digital assets have increasingly correlated with equity markets, particularly technology stocks, creating systemic connections that didn’t exist a decade ago. When Bitcoin faces structural resistance to recovery, it often signals broader uncertainty about risk appetite in financial markets.

The current supply-in-profit dynamic suggests cautious positioning across risk assets. Investors who entered during periods of optimism—whether in Bitcoin or equities—are now managing losses or marginal gains. This psychology tends to reduce aggressive new capital deployment and increases sensitivity to negative catalysts.

Institutional investors monitoring Bitcoin as a leading indicator of retail risk sentiment have noted the fragility evident in bounce rejections. When technical rallies fail at key support thresholds, it frequently precedes broader risk-off moves across equities, commodities, and emerging markets. The current environment fits this pattern, suggesting market participants should prepare for potential volatility spillovers.

Macro conditions also matter. Interest rate expectations, inflation data, and central bank policy announcements all influence how investors position across risk assets. Bitcoin’s struggle to recover suggests that macro headwinds—whether real or perceived—continue to dominate investment decisions despite tactical oversold conditions that would normally trigger aggressive buying.

What Recovery Would Require

For Bitcoin to establish a genuinely sustainable recovery, several conditions need alignment. The most immediate is re-establishing comfort among existing holders by pushing supply in profit decisively above 75% and defending that level through volatility tests.

This is not automatic. Recent price action demonstrates that even modest bounces face rejection, suggesting market participants remain skeptical of lasting upside. Fresh capital inflows and reduced selling pressure will both be necessary to shift this dynamic.

Additionally, the volatility environment itself demands attention. Markets characterized by sharp swings and failed bounces tend to shake out marginal holders and discourage new entrants. Establishing price stability—even at lower absolute levels—would matter more than premature rallies that collapse under distribution.

From a technical perspective, Bitcoin would benefit from establishing a trading range where buyers and sellers reach temporary equilibrium. This consolidation period would allow supply-in-profit metrics to normalize and provide psychological relief to investors who have endured the recent drawdown. Whether such consolidation occurs near current levels or requires further downside testing remains uncertain.

Looking Forward: Recovery Pathways and Risks

Investors monitoring crypto prices should recognize that recovery narratives based on headline percentage gains can mask underlying fragility. A market where 71% of supply is in profit, yet that percentage fails to expand meaningfully on bounces, remains structurally challenged regardless of where price trades in absolute terms.

The path forward depends on whether participants gradually add to positions from weakness or continue to use strength to exit. The supply-in-profit metric will reveal which behavior dominates. A sustainable recovery would show this metric consistently rising above 75% and holding through volatility, not merely touching that level before retreating.

For entities tracking Bitcoin as an investment or business consideration, the current environment presents both risk and opportunity. The fragile recovery picture suggests caution regarding aggressive accumulation, while the extremely oversold positioning indicates that patience with existing holdings may be rewarded. The distinction between these two approaches—avoiding new commitment versus maintaining conviction on existing positions—defines rational behavior in structurally challenged markets.

The broader cryptocurrency ecosystem remains interconnected with Bitcoin’s price action. Altcoins and blockchain-based projects typically underperform when Bitcoin struggles to establish conviction, and many depend on Bitcoin strength for capital flow. A sustained Bitcoin recovery would signal improving risk appetite that extends throughout digital asset markets.

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Massive Bitcoin Bid Walls Spotted On Binance: Bulls Step In With 2,800 BTC Cluster

Massive Bitcoin Bid Walls Spotted On Binance: Bulls Step In With 2,800 BTC Cluster

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Bitcoin has retreated below the $100,000 level for the first time since May, trading near $97,000 as selling pressure intensifies across major exchanges. While market sentiment has grown cautious and leverage positions are being unwound, on-chain analysis reveals a counterintuitive signal: large institutional buyers are deploying substantial bid walls on Binance Futures, suggesting that deep-pocketed traders may be positioning ahead of a potential recovery.

Industry Context: Bitcoin’s Market Position and Recent Performance

Bitcoin’s current price action occurs against a backdrop of significant market evolution in the cryptocurrency and digital asset space. The broader digital asset market has matured considerably over the past five years, with institutional participation now representing a material portion of trading volume and price discovery mechanisms. Major financial institutions, including asset managers and hedge funds, have integrated Bitcoin into their portfolios as an alternative asset class, fundamentally altering how price movements occur and how liquidity manifests across trading venues.

The retreat from the $100,000 psychological threshold represents a crucial test of market structure and institutional conviction. Since Bitcoin’s inception, movements of this magnitude—occurring over compressed timeframes—have typically attracted diverse participant categories with differing risk tolerances and time horizons. Retail traders operating with leverage tend to capitulate quickly during sharp declines, while institutional players often view such volatility as opportunity rather than calamity.

Binance, as the world’s largest cryptocurrency exchange by trading volume, serves as a primary price discovery mechanism for Bitcoin and digital assets globally. The appearance of substantial bid wall activity on Binance Futures carries particular significance because it reflects the positioning and conviction of traders with meaningful capital at stake. These traders understand that deploying visible bid walls creates market impact—they telegraph demand and can influence the psychology of other market participants.

Institutional Buyers Signal Accumulation at Lower Levels

According to CryptoQuant analyst Maartunn, order book data from Binance Futures shows two prominent bid clusters emerging at current price levels. The first cluster concentrates around 800 BTC, while a second and larger accumulation reaches approximately 2,000 BTC—representing a total of roughly 2,800 BTC in buy-side interest at depressed valuations.

These bid walls serve a specific function in market dynamics. They create visible layers of demand that can absorb incoming sell orders, effectively placing a temporary floor beneath the price. For Bitcoin to decline significantly below these levels would require sellers to overcome substantial buying interest, a process that demands considerable selling volume and determination.

Bid walls of this magnitude typically appear when experienced traders perceive an asset as undervalued and are willing to absorb weakness. This behavior has historically coincided with early stages of market reversals.

— Market Analysis Pattern

The timing of these accumulations is noteworthy. Retail traders have grown fearful, rotating capital into stablecoins and reducing leverage exposure amid volatility. Meanwhile, the appearance of institutional-scale buy orders suggests that sophisticated market participants are making contrarian moves—buying when others are selling.

Key Pattern

Historical precedent indicates that large bid walls often mark inflection points in price action. When whales and institutional traders concentrate buy orders at specific levels, short-term relief rallies frequently follow as the accumulated liquidity absorbs selling pressure.

Technical Breakdown and Support Levels Under Scrutiny

Bitcoin’s technical picture has deteriorated noticeably in recent trading sessions. The asset has decisively broken below the $100,000 psychological support level, a threshold many traders watched closely as a line in the sand for bullish conviction.

On the three-day timeframe, the 50-day moving average has crossed below the 100-day moving average—a bearish signal indicating fading momentum and the potential for further downside. Volume has surged during this decline, a characteristic typical of panic-driven liquidations as leveraged traders are forced to exit positions.

The broader support picture extends lower. The 200-day moving average, currently positioned near $88,000, represents the next meaningful technical floor. Should Bitcoin fail to stabilize above the $95,000–$97,000 range where the bid walls are concentrated, that longer-term moving average could become the next battleground between bulls and bears.

Bitcoin’s price action remains under pressure from macro headwinds and elevated volatility. However, the presence of institutional bid walls suggests that not all market participants view the current weakness as a reason to panic.

Market Sentiment Shifts as Fear Grips Retail Traders

Sentiment metrics paint a picture of widespread caution. Retail traders are scaling back leverage significantly, concerned that further downside could trigger additional cascade liquidations. The flow of capital into stablecoins—a defensive move—underscores the shift from bullish positioning to preservation of capital.

This fear-driven environment is precisely where institutional accumulation historically occurs. When confidence among retail participants collapses, experienced traders and well-capitalized investors often step in to add to positions, betting that the emotional selling will eventually exhaust itself.

Deep-pocketed players position aggressively when retail sentiment turns fearful. This dynamic suggests growing confidence among institutional traders that Bitcoin’s downside may be contained at current levels.

— CryptoQuant On-Chain Analysis

However, traders should not dismiss the genuine macro uncertainties still affecting digital asset prices. While the bid walls indicate institutional confidence in near-term support, broader economic conditions and regulatory developments continue to weigh on sentiment.

Market Context

Bitcoin’s recent decline represents its lowest price point since May. This correction has created sharp selling pressure, but it has also created conditions where value-focused buyers—particularly institutional players—find the risk-reward proposition increasingly attractive.

Market Implications and the Role of Institutional Capital Flow

The implications of this divergence between retail capitulation and institutional accumulation extend beyond immediate price action. For the broader cryptocurrency market, institutional capital flows have become increasingly decisive in determining price direction and volatility characteristics. When institutions accumulate aggressively, it typically signals that they perceive value at current prices and believe medium-term risk-reward profiles have improved materially.

The emergence of substantial bid walls at approximately $97,000 suggests that institutional traders may be positioning for a rebound toward higher levels. Such positioning would align with longer-term Bitcoin adoption narratives and institutional demand factors that remain fundamentally intact despite near-term volatility. Asset managers and institutional investors with multi-year holding horizons often view sharp corrections as buying opportunities rather than reasons to exit positions entirely.

Additionally, the contrast between retail and institutional behavior carries implications for market structure itself. Exchanges like Binance now process sufficient volume that institutional accumulation patterns can directly influence pricing at the global level. This represents a material shift from earlier periods when Bitcoin price discovery relied more heavily on retail speculation and smaller trader bases.

What Comes Next: Stabilization or Further Breakdown

The immediate outlook depends on whether the 2,800 BTC in bid wall orders remains in place and continues absorbing selling pressure. If these orders hold and accumulate additional buy interest, Bitcoin could stabilize in the $95,000–$97,000 range, potentially setting the stage for a short-term relief rally.

Conversely, if selling pressure proves overwhelming and bids are pulled, Bitcoin could test the 200-day moving average near $88,000. Such a scenario would constitute a more significant breakdown and would likely extend the current bearish phase.

For traders monitoring crypto prices, the key metrics to watch are order book depth on major exchanges, volume patterns on decisive breaks of support levels, and whether institutional accumulation accelerates or reverses. The presence of substantial bid walls is encouraging for bulls, but it is not a guarantee against further weakness.

Conclusion: Institutional Positioning as a Market Anchor

The cryptocurrency market remains characterized by elevated volatility and macro uncertainty. The presence of institutional bid walls at current price levels represents a meaningful countervailing force to retail selling pressure, though traders should recognize that crypto markets remain prone to rapid shifts in sentiment and positioning.

Positions should be sized appropriately for the current risk environment, and traders should remain alert to both technical breakdowns and potential relief rallies supported by institutional positioning. Bitcoin’s ability to stabilize above the $97,000 level and defend the bid wall support will be critical in determining whether the current correction finds a bottom or extends into deeper territory. On-chain data suggests institutional confidence, but market dynamics can shift rapidly when macro conditions change or sentiment turns even more negative.

The broader implication of institutional accumulation at depressed prices is that the digital asset industry continues maturing toward a structure where capital allocators view Bitcoin not merely as speculative asset but as strategic holdings worthy of strategic positioning during market dislocations. This evolution toward institutional-grade market participation ultimately may reduce extreme volatility over longer timeframes while intensifying tactical moves during periods of retail capitulation.

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