Ethereum Price Drops 5% In 7 Days: Truly An 'Excellent Buy-The-Dip Opportunity'?

Ethereum's (CRYPTO: ETH) price decline could be an accumulation opportunity, although traders predict further corrections before a potential rally.  

Cryptocurrency	Price	Market Cap	24-Hour Trend	7-Day Trend
Ethereum (CRYPTO: ETH)	$3,302.04	$397.8 billion	-0.1%	-4.9%
Bitcoin (CRYPTO: BTC)	$94,246.74	$1.9 trillion	-0.3%	-2.9%
XRP (CRYPTO: XRP)	$2.32	$132.3 billion	+1.6%	-4.2%

Trader Notes: Crypto chart analyst Ali Martinez says a drop to $2,900 could be highly bullish and an "excellent buy-the-dip opportunity" for a potential target of $7,000.

Crypto Wolf believes Ethereum has minimal downside remaining, with only 4-7% correction left before it starts a run to new all-time highs.

There's likely little to no downside left, maybe a max of 4-7%, before $ETH is sent to new ATHs. pic.twitter.com/5TUacZqF7J

— Wolf 🐺 (@IamCryptoWolf) January 9, 2025

Crypto Chase shared that he sold half of his Ethereum holdings at breakeven and plans to reallocate into Solana if it drops further.

While optimistic about Ethereum's long-term performance, he highlights concerns about Bitcoin-related news affecting the market.

Statistics: IntoTheBlock data shows around 74.7% of Ethereum addresses being long-term holders, a higher number than for Bitcoin.

The platform states this trend is likely to hold until Ethereum approaches its all-time high and holders start taking profits.

Ethereum's large transaction volume increased 2.1% to $8.1 billion, while daily active addresses inched up by 0.1%.

Transactions greater than $100,000 increased from 7,178 to 10,244 in a single day.

Exchanges netflows are down by 454.6%.

Deribit data shows $451 million in ETH options set to expire in January, with a Put/Call ratio of 0.49 and a Max Pain Point of $3,500.

Community News: Phala Network, a Polkadot-based parachain, announced the launch of a new Layer-2 network on Ethereum in collaboration with Succinct Labs and Conduit.

The move highlights Ethereum's continued dominance as a smart contract platform.

Bhutan's special administrative region disclosed plans to hold Bitcoin, Ethereum and BNB Coin as part of its strategic reserves, signaling institutional confidence in Ethereum's future.

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• Ethereum Climbs 12% In A Week: Could It Outperform In 2025?

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