Rich by Coin

Ethereum and Bitcoin have faced significant drawdowns, with Ethereum experiencing a 60% or greater drop seven times since 2018, according to Tom Lee, Chairman of BitMine Immersion Technologies. Lee attributes the recent 10-day crypto market decline, where Ethereum fell 40% and Bitcoin 30%, to market cycle patterns and external shocks, including a leveraged options blowup tied to Asian funding. Despite the downturn, some analysts see potential for a rebound, citing historical patterns where significant drops preceded rallies.

Ethereum’s recent taker buy volume spike, surpassing $272 million, suggests aggressive buying, which could signal a reversal. However, opinions remain divided, with some viewing the market as structurally bearish and others seeing it as an opportunity for growth. The MVRV Z-Score indicates a potential reversal, but psychological barriers remain a challenge for investors.

Ethereum and Bitcoin have logged notable declines in a recent 10-day window, with Ethereum down about 40% and Bitcoin down around 30%, underscoring volatility in the crypto market. As market cycles unfold, analyst Tom Lee notes that Ethereum has experienced a 60% or greater drop on seven occasions since 2018, reflecting the cyclical nature of crypto markets and the impact of external shocks such as leveraged options events tied to Asian funding. Although the downturn has drawn cautious sentiment, several analysts point to historical patterns where sharp declines preceded rallies, suggesting potential upside if conditions stabilize. On-chain activity adds layers to the debate: taker buy volume for Ethereum has exceeded $272 million, signaling aggressive buying pressure that could accompany a reversal, should demand persist and market sentiment improve.

Yet the outlook remains mixed. Some observers view the current price action as structurally bearish, while others see it as an opportunity for value accumulation. The MVRV Z-Score points to a possible reversal, but psychological barriers continue to challenge investors as they weigh risk, timing, and capital allocation in a volatile market.