The return of risk-on sentiment has sparked a recovery, but many still question Ethereum as a “best crypto to buy” contender, with long-term holders offloading at a loss.
As global investment markets rallied on Trump’s 90-day “tariff war” pause, the front-running altcoin saw a 24% surge during Wednesday trading to a $1695 peak.
While this policy shift opened the door to fresh liquidity, sentiment quickly cooled. A likely “sell-the-news” event has since dragged Ethereum back to $1550.
Now down over 60% from its post-election rally highs, ETH is seeing capitulation trades from holders looking to limit further downside.
Long-Term Holders Enter Capitulation Mode
Long-term Ethereum holders have now entered what’s commonly referred to as “capitulation” mode—a stage when even the most patient investors begin to fold under pressure.
With the multi-month free fall, many investors have already exited positions, while others remain sidelined waiting for clarity. Still, some see opportunity.
According to popular analyst Ali Martinez, this could present a rare window for contrarian buyers.
“For those watching risk-reward dynamics, this phase has historically marked prime accumulation zones,” he shared on X.
ETH Price Analysis: Time to Accumulate Ethereum?
The buy-the-dip opportunity may not be over for Ethereum with the loss of a critical historical support that marked every major bottom since mid-2020.
This breakdown breaches the lower boundary of a massive symmetrical triangle pattern—a final line of defense before deeper losses set in.
While much of these losses have already materialized, the next key support sits at $1,050. That marks a potential 30% slide before substantial buying pressure is likely to return.
While much of the downside has already played out, the next key support lies at $1,050, leaving room for a potential 30% slide before meaningful demand returns.
This scenario holds weight, with the MACD line accelerating its move away from the signal line, underscoring dominant selling pressure.
While the Relative Strength Index (RSI) has hit the oversold threshold at 30—a sign of seller exhaustion—a pronounced reversal seems slim without conviction from buyers.
Instead, a short-term consolidation around the immediate $1,525 support level—seems the most probable outcome without any fresh market catalysts.
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