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

Ethereum's ETH/USD 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 ETH/USD	$3,302.04	$397.8 billion	-0.1%	-4.9%
Bitcoin BTC/USD	$94,246.74	$1.9 trillion	-0.3%	-2.9%
XRP XRP/USD	$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.

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.

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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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