Chaos has erupted in the crypto market just as Ethereum crashed below the psychological $2,000 level. The retailers are in a confused state, as one analyst sold his ETH holdings while the other still believes that ETH is capable of hitting 5-figures.
Retailers are driven by FOMO after ETH loses $2K support
Ethereum crashed below $2,000, and the crypto market is going haywire. Usually when the price of the coin falls, traders, especially retailers, react in two ways. The most common reaction is fear, uncertainty, and doubt (FUD) taking over the market, and they write off any upside for the token and get rid of it.
The other group, which is less common, are the ones who are driven by fear of missing out (FOMO). These retailers see the drop as an opportunity to buy the asset at a discounted price, and they start buying the dip.
Unlike at other times when the most common activity is to sell the coin at a dip, in this case, however, the crowd is actually taking the less common route for now. Retail has erupted with “buy the dip” calls toward $ETH
‘ETH is money thesis’ plays out but ETH is not an asset
According to Santiment, Ethereum may have a further slip, as the crowd usually gets it wrong. However, David Hoffman, an Ethereum advocate, also sold his Ethereum holdings, stating that “The ETH is Money thesis didn’t fail… it played out. Ethereum got the ETH price it deserves, and I don’t see ETH being rerated as an asset, higher or lower.
p.s. I am massively bullish Ethereum. I expect Ethereum as a network to do exceptionally well from here on out. I think only a marginal amount of that success will be reflected in ETH.”
The demand for the token is in the price action
“The demand for crypto tokens is less than we think. People are not buying tokens because they want to hold the underlying asset. They are taking directional bets. The token is not the prize, the price action is.
“Tokens that do not move do not tend to survive. Volatility attracts attention, generates volume and maintains visibility. A token with no price movement is invisible – and invisible tokens die.
“While long-term utility narratives are important and can generate strong upside, the reality is that most traders are after short-term gains.” CEO of Yellow Network, Diego Martin
Analyst still believes ETH can hit 5 digits
When Hoffman has no hope for ETH prices to appreciate, another analyst who goes by the pseudonym Crypto Patel on X, stated that even if Ethereum were to break below and reach $1,500, the strategy was to buy, as Patel still believes Ethereum is capable of hitting 5 figures in the long term.
ETH shatters ascending triangle pattern
As shown in the chart below, ETH has crashed below the lower trendline of the ascending triangle. An ascending triangle is a bullish chart pattern that forms when the price creates a horizontal resistance level at the top while the lows continue rising over time, forming an upward-sloping support line. This creates a triangle-like structure that reflects increasing buying pressure in the market.
The pattern shows that sellers are repeatedly defending the same resistance zone, preventing the price from moving higher, while buyers keep entering the market at increasingly higher prices. This behavior suggests that bulls are becoming more aggressive and gradually absorbing the selling pressure. As the range tightens, pressure builds between buyers and sellers.
Traders often interpret the pattern as bullish because the repeated higher lows indicate growing confidence among buyers. Eventually, if buyers gain enough strength, the price breaks above the flat resistance level, which is considered a breakout confirmation. This breakout is often accompanied by increased trading volume and can lead to a strong upward move as more traders enter the market and short sellers exit their positions.
However, the point is that ETH has crashed below the lower trendline of the ascending triangle, which is concerning. Going by the relative strength index indicator, ETH price is almost at the verge of being oversold, and that means there will be a market correction and ETH prices will recover. If the recovery happens and ETH gets back above the lower trendline of the ascending triangle, the hopes of a bullish breakout at the completion of the pattern can not be written off.