Ethereum Plummets 6% In 24 Hours: Is There Really An 'Epic Rally Coming' After This?
Ethereum ETH/USD has plummeted alongside Bitcoin in early Monday trading, defying fundamentally bullish announcements of key network rollup upgrades aimed at improving scalability and reducing fragmentation. CryptocurrencyPrice Market Cap24-Hour Trend7-Day TrendEthereum ETH/USD $3,103.12 $374.2 billion-6.1% -7% Bitcoin BTC/USD $100,562.91$1.99 trillion-4.1% -6.7% XRP XRP/USD $2.88$165.8 billion-7.8% -12.6% Trader Notes: Crypto trader Bluntz Capital is taking a long position on ETH, citing an "easy invalidation setup" and negative funding rates. He anticipates a rebound to at least $3,700, at which point he plans to reassess. everything getting smoked today but punting an $eth long here because invalidation is so easy to place and funding flipping negative across the board on this blood.thinking we should at minimum start heading back to 3700 here and ill re evaluate when we get there pic.twitter.com/CqqFeTfFy2— Bluntz (@Bluntz_Capital) January 27, 2025Ted Pillows predicts Ethereum will hit $4,000 by the end of January, supported by Donald Trump holding ETH in an affiliated wallet, Ethereum announcing important network updates and Ethereum being the only smart contract platform with its native token classified as a commodity Additionally, Ethereum leads in USD stablecoin usage, outpacing competitors and it could be central to a Ethereum could be central to a future digital asset strategic reserve. Meanwhile, Michaёl van de Poppe expressed frustration with ETH's flat price performance but remains optimistic about ETH's long-term growth, particularly in 2025. He points out that lower yields under a Trump presidency and a weaker U.S. dollar (DXY) could favor Ethereum over Bitcoin. Statistics: Glassnode data shows hourly funding rates for ETH and other cryptos suggest subdued demand for long positions compared to the late 2024 rally. Lookonchain data shows the Ethereum Foundation selling another 100 ETH worth $308,000, totaling 4,766 ETH ($13.6 million) sold since Jan. 2, 2024. IntoTheBlock data shows Ethereum's large transaction volume declined 34.3% and daily active addresses down 23% in a single day. Exchange netflows were down 305.2%. Transactions greater than $100,000 dropped from 5,719 to 4,798. Coinglass data shows ETH open interest decreased 1.1% while derivatives trading volume spiked 139.7% in a single day. Long liquidations ($90.8 million) surged to highest levels since Jan 20,2025. Community News: Ethereum’s founders discussed upgrades to Layer-2 networks over the weekend, unveiling plans for "based rollups" and "native rollups." These upgrades aim to enhance security, reduce fragmentation and reshape the economic flow between Ethereum's layers, potentially driving long-term growth. Read Next: Is Ethereum Coming Back Thanks To Donald Trump? ‘$5,000 By March,’ Trader Vows Image: Shutterstock Market News and Data brought to you by Benzinga APIs© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.