Ethereum (D1 timeframe)
The situation for Ethereum is even more “drastic,” as the correction from the highs is currently close to 55%. While a technical rebound is likely given the scale of the declines, a lasting trend reversal remains less realistic as long as Bitcoin stays under pressure. Similar to Strategy in Bitcoin’s case, Ethereum also has its own “Strategy” in the form of Bit Immersion Digital. The company led by Tom Lee is currently sitting on more than USD 5 billion in unrealized losses on its ETH holdings. While the long-term fundamentals supporting Ethereum’s growing importance as a network benefiting from the mega-trend of tokenization remain intact, capital flows remain cautious, and there is no sign that buyers have the strength to push ETH above USD 3,000–3,300 in the near term—especially if Bitcoin continues to fuel uncertainty in the market.