Ethereum News Today: Bitcoin Steady as Altcoins Plunge Over 40% Amid Ethereum Weakness

The cryptocurrency market is navigating a period of uncertainty as Bitcoin maintains stability near $118,000 while altcoins face sharp corrections. Bitcoin’s resilience contrasts with the struggles of smaller cryptocurrencies, which have seen significant declines amid heightened selling pressures and shifting investor sentiment [1]. Analysts highlight the divergence between Bitcoin’s performance and the broader altcoin market, where key tokens like BNB, AVAX, and Solana are under pressure.

BNB recently reached a 230-day high of $810 but faces risks of retracing to $745 or lower if Ethereum weakens further. Increased selling activity could push its price toward $722–$686, undermining recent gains [1]. Similarly, AVAX remains stuck below $27, with its critical support level at $22.5–$22 under threat. Broader macroeconomic factors, including legal and political developments linked to the Department of Justice, are exacerbating market jitters, potentially pushing AVAX toward $19.7 [1].

Solana’s recent failure to establish $203 as a stable support level has exposed vulnerabilities, with further declines to $189–$165 likely if Ethereum’s instability persists [1]. Dogecoin, which fell 8% to $0.243, is closely watched for a potential rebound above $0.4, which analysts suggest could signal broader altcoin recovery [1]. However, a breakdown below $0.18 might accelerate its slide to $0.145 by early August.

The altcoin market’s fragility is compounded by volatile token-specific dynamics. Pump.fun’s PUMP token, for example, plunged over 40% in its first trading week, driven by heavy presale selling. Blockchain analytics reveal that 31.6% of presale buyers liquidated holdings on decentralized exchanges, while 53% moved tokens to centralized platforms, signaling further downward pressure. Despite these losses, 75% of traders remain bullish, betting on a rebound amid $19.81 million in buybacks [2].

Ethereum’s struggles have added to the uncertainty. A drop below $3,700 triggered a $3 million liquidation for a major trader, reflecting broader risks in leveraged positions [3]. Institutional investors have shifted capital to Bitcoin as a safe haven, reducing exposure to altcoins amid heightened volatility [2]. This trend underscores a broader risk-averse strategy in a market grappling with interconnected risks, as highlighted by a recent study emphasizing how volatility in one asset can ripple across the ecosystem [5].

While some analysts caution about the structural challenges facing altcoins, others point to potential entry points for swing traders. Tokens like AAVE and PIVX, which have seen steep declines, are attracting interest as speculative opportunities [6]. However, the path to recovery remains clouded by persistent selling pressure and Ethereum’s performance.

The market’s mixed signals reflect diverging investor strategies. Whales have cashed in profits in some tokens while enduring losses in others, betting on eventual rebounds. Meanwhile, industrial demand indicators like U.S. EIA crude runs hitting 16.9 million bpd offer macroeconomic optimism, though the crypto sector remains insulated from such trends [7].

As the sector digests these developments, altcoins face a test of their resilience. Pump.fun’s stabilization efforts and Ethereum’s critical support levels will be key indicators of whether a rebound is feasible. For now, the market remains in a delicate balancing act between caution and optimism.

Sources:

[1] [Cryptos Face Turbulence: Will Altcoins Bounce Back?](https://coinmarketcap.com/community/articles/688141934216b867b27139c3/)

[2] [Early PUMP holders gamble on rebound amid steep losses of over 40%](https://cryptoslate.com/early-pump-holders-gamble-on-rebound-amid-steep-losses-of-over-40)

[3] [Ethereum (ETH) Price Dips Below $3700, Major Trader Risks Liquidation with Nearly $3M in Losses](https://blockchain.news/flashnews/ethereum-eth-price-dips-below-3-700-major-trader-risks-liquidation-with-nearly-3m-in-losses)

[5] [Navigating Risk in Crypto Markets: Connectedness and Portfolio Implications](https://www.mdpi.com/2227-9091/13/8/141)

[6] [Top Losers Analysis: $PIVX , $AAVE , $API3 , UMA Today](https://www.binance.com/en/square/post/27319269515201)

[7] [U.S. EIA Refinery Crude Runs Rise Sharply, Signaling Strengthening Industrial Demand](https://www.ainvest.com/news/eia-refinery-crude-runs-rise-sharply-signaling-strengthening-industrial-demand-2507)