Ethereum's recent price drop: Should long-term investors consider buying?

crypthub

about 24 hours ago

Recent Ethereum Price Action

Ethereum experienced a sharp correction, dropping from around $4,300 to $3,510 before partially recovering. This decline was part of a broader crypto selloff linked to global market anxieties and significant liquidations. Despite the drop, some market signals indicate potential for a buying opportunity for long-term investors.

Derivatives Market Signals & Outlook

Ethereum's open interest increased alongside price declines, suggesting new positions being opened. Funding rates shifted negative, indicating bearish sentiment and the possibility of a short squeeze if prices rise. Technical indicators like the RSI bouncing from oversold levels and the MACD histogram flattening offer signs of easing bearish momentum.

Trading Setup and Future Potential

A cautious, buy-on-dip trading setup is suggested between $3,720–$3,800 with stop-loss and profit target levels. Breaking above $4,055 could invalidate the downtrend, targeting $4,330–$4,390. If Ethereum fails to hold $3,720, risk extends to $3,511. A broader trend remains intact, with potential for a return to $4,500.

Bitcoin Hyper (HYPER) Project

Bitcoin Hyper ($HYPER) is a new Layer 2 project combining Bitcoin's security with Solana's speed. It aims to expand the Bitcoin ecosystem by enabling faster, low-cost smart contracts and dApp development. The presale has already exceeded $23 million, with tokens currently priced at $0.013095.