Down 13% in 5 Days, Is Ethereum Still a Buy?

Core Insights - Ethereum's recent price rally towards its all-time high has stalled, with a 13% decline from September 21 to September 26 due to rising economic uncertainties [1] - The price movements in the short term are influenced more by trader positioning and macroeconomic headlines rather than the asset's fundamentals [2] - Macroeconomic factors, particularly a higher-than-expected inflation report, have led to speculation that the Federal Reserve may not cut interest rates as anticipated, impacting risk assets like Ethereum [3][4] Market Dynamics - The increase in borrowing costs makes riskier assets less attractive to institutional investors, especially when Ethereum's price was nearing its all-time high, leading to perceptions of it being overpriced [4] - Despite the recent price decline, the underlying fundamentals of Ethereum remain strong, indicating a potential for long-term investment [5][6] Tokenized Assets Growth - The value of tokenized real-world assets (RWAs) on Ethereum has increased, reaching approximately $9.1 billion as of September 29, a 3% rise over the previous month, with over 93,000 holders [8] - The overall tokenization landscape across all chains has seen a growth to about $31.5 billion, reflecting a 9% month-over-month increase, indicating a continued migration of assets to blockchain technology, with Ethereum benefiting from this trend [8]