Bitcoin, Ethereum Plummet 5%, But Traders Bet One Will Recover Until 2026

Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are down over 10% in the last 30 days, but traders are betting on ETH to outperform until the end of the year.

What Happened: Michael van de Poppe noted that Bitcoin is currently in a corrective phase, while Ethereum continues to show relative strength by holding up well during the pullback.

This divergence is seen as constructive for ETH despite broader market weakness.

BTC's Most Likely Sweep

Van de Poppe outlined three downside scenarios for Bitcoin, all with realistic odds:

• Most likely: A sweep of the $87,800 level followed by a bounce. The presence of a CME gap near $90,400 increases the probability of a recovery from this zone.
• Less likely: A move toward $83,800. If price reaches this level, Bitcoin may struggle to bounce immediately, signaling deeper market weakness.
• Bearish scenario: Failure to hold the $86,000–$87,000 support area would raise the odds of a full double-bottom retest, opening the door to a deeper holiday-period pullback.

Ethereum ‘Here To Stay'

Daan Crypto Trades noted that Ethereum has underperformed expectations this cycle, lagging Bitcoin and several other assets.

However, the ecosystem itself has matured significantly. Rather than a breakout phase, this cycle looks more like a transition and consolidation period for ETH.

Institutional adoption continues to grow, particularly around real-world asset tokenization, where Ethereum remains the dominant settlement layer.

Despite sluggish price action, long-term conviction in ETH remains intact.

Also Read: Bitcoin Stuck Around $90,000 XRP, Dogecoin Trade Flat While Ethereum Rises 2%

What's Next: Crypto Seth added that current price action in both Bitcoin and Ethereum is being driven more by derivatives positioning and liquidations than by fundamentals.

The core narratives remain unchanged, Bitcoin as digital gold and Ethereum as the primary institutional settlement layer.

While fundamentals shape long-term value, they often take a back seat during leverage-driven volatility. Retail investors typically lack the liquidity to buy during periods of extreme fear, leaving accumulation to well-capitalized players when sentiment is at its worst.

Read Next:

• Cathie Wood’s 2026 Playbook: BTC Leads Crypto Portfolio, Trimming TSLA To ‘Rebalance’