Ethereum Drops 30% - Now What?

Market Analysis and Predictions - Ethereum experienced a 30% correction, aligning with previous expectations, leading to a shift in market bias towards a potential rally to new all-time highs [2][5] - The analysis suggests that Ethereum's valuation against Bitcoin bottomed out in April, coinciding with Ethereum reaching its logarithmic regression trend line, which historically signals a bottom [12] - Altcoins, in general, have shown weakness against Bitcoin, with many altcoin/Bitcoin pairs reaching new cycle lows, indicating a challenging environment for altcoins compared to Ethereum [14][15][16] - Bitcoin dominance is expected to remain resilient in the short term, potentially spiking up to 64%, similar to patterns observed in October 2017 and 2020 [18][19] - Historically, Bitcoin dominance tends to increase as Bitcoin rallies to new cycle highs, followed by a correction in Bitcoin dominance once Bitcoin breaks through to new all-time highs [25][26] Risk Management and Contingency Planning - The analysis will be re-evaluated if Bitcoin experiences two weekly closes below its 50-week moving average, which historically indicates the end of a market cycle [7][8] - Despite the bullish outlook on Ethereum, the possibility of further downward wicks and potential lower lows for ETH/Bitcoin should be considered, especially if Bitcoin's bull market is not yet over [24][29] Key Levels and Metrics - Total 3 minus USDT divided by Bitcoin reached 029%, and subtracting USDC as well, it went to 025%, aligning with a long-term target of 25% of Bitcoin's market cap for the collective altcoin market [14] - Others divided by Bitcoin reached a new cycle low of 008%, matching levels seen in December 2020 [15]