The second-largest cryptocurrency has been sliding hard in recent weeks, and although it has shown a slight rebound, it still remains deep in the red on a monthly scale.
This might seem concerning, but according to one popular analyst, the current levels could present a great buying opportunity.
Scary or Not?
As of press time, ETH trades at around $1,670, representing a 30% plunge compared to the start of May. Its poor performance mirrors the broader crypto market’s correction, with other popular altcoins like Bitcoin Cash (BCH), Cardano (ADA), and Internet Computer (ICP) suffering even steeper losses.
But beneath ETH’s sharp pullback, some analysts believe there’s a silver lining. Among those is Ali Martinez, who revealed that the asset’s MVRV Pricing Band has fallen below 0.8.
Such a low ratio typically suggests that many investors are in a loss (at least on paper) and has historically served as a signal that the bottom is near, with a resurgence potentially on the way. Martinez described the development as a high-probability accumulation zone and a classical “buy-the-dip” opportunity. Just a few days ago, the analyst touched upon Ethereum again, saying that its TD Sequential Indicator has flashed a buy signal.
Certain factors and technical analysis tools also support the rebound scenario. The declining amount of ETH stored on crypto exchanges is a clear example. Earlier today (June 9), the figure dropped to a monthly low of roughly 14.5 million tokens, signaling a shift from centralized platforms to self-custody methods, which reduces immediate selling pressure.
Next on the list is ETH’s Relative Strength Index (RSI), whose ratio is still sitting below 30. This means the asset remains oversold and is likely to stage a short-term comeback. The technical indicator ranges from 0 to 100, with values above 70 indicating a potential correction.
Tread Carefully
Despite the optimistic predictions and favorable indicators mentioned above, some analysts think a more severe plunge could be on the horizon. X user Ted, for instance, paid special attention to the $1,700 level, which now acts as resistance. He believes that if ETH fails to reclaim this zone, it could plummet to as low as $1,400.
The fading institutional interest is another warning element. Despite the green candle over the past 24 hours, spot ETH ETFs have been bleeding heavily in the last several weeks, signaling that pension funds, hedge funds, and other investors have reduced their exposure to the token. This has caused the products’ issuers, such as BlackRock, Grayscale, Fidelity, and other financial giants, to sell real ETH, thereby adding further pressure to an already shaky market.
The post Ethereum (ETH) Plummets 30% in a Month: Is That the Perfect ‘Buy-the-Dip’ Moment? appeared first on CryptoPotato.
A potential bargain or just the calm before a bigger drop? Crypto Bits, Crypto News, Ethereum (ETH) Price
This articles is written by : Nermeen Nabil Khear Abdelmalak
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