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Better known online as DonAlt, the trader who was on the money about XRP going from $0.70 to $3.50 this cycle, has had his say on Ethereum's recent dip with a new post — and he is not thrilled.
What happened is that Ethereum pulled back from recent highs above $3,600, causing panic on social media. In the last 24 hours, almost $197 million in ETH liquidations have been recorded, mostly from long positions.
But as DonAlt points out, look at the chart and can see that it is actually telling a different story. There has been a bit of a pullback, but it is still within a much bigger uptrend, says the trader.
The major altcoin is still well above the June high-point zone, and even with the dip to the mid-$3,400s, the trend structure has not broken. The asset rallied over $1,000 in under three weeks, and this retracement still sits well within normal ranges for a bullish cycle.
So far, no key support levels — like $3,300 or the $3,080 zone — have been violated.
The whole market has seen over $500 million in liquidations across all the main tokens in the same period, and Bitcoin has shown similar cooling signs. But the sell-off is not as big or fast as the kind of reversal we usually see.
DonAlt's view, based on past high-time frame wins like his XRP call, suggests that the current ETH price drop is more of a technical breather than the start of a meltdown. The sharp reaction across social channels probably just reflects short-term nerves rather than any major change.
In the current situation, Ethereum is still trading around 80% higher than its low point in Q2, and the bullish structure is still in place. Unless there are deeper levels out there that have been tested and broken, this does not seem like a collapse to DonAlt but more like the kind of pause that bull markets tend to deliver.
Vladislav Sopov
U.Today Editorial Team