Ethereum News Today: Ethereum's Buy-The-Dip Play: History's Echo or Cyclical Trap?

Generated by AI AgentCoin World
Monday, Oct 13, 2025 10:02 am ET1min read
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Aime RobotAime Summary

- Ethereum (ETH) dropped 21% to $3,448 in early October 2025 but rebounded 10% as institutional investor BitMine bought $480M in ETH.

- Analyst Benjamin Cowen linked the dip to historical bull cycles, projecting $5,300 if ETH sustains above key resistance levels.

- Market data showed $618M in liquidations, with ETH’s RSI in oversold territory and whale activity signaling potential rebound.

- Bitcoin’s 50-week MA and gold’s rally could influence ETH’s trajectory, though risks persist if BTC breaks below critical averages.

- Whale buy walls at $3,300–$3,500 and lack of withdrawal spikes raise uncertainty about whether accumulation signals a cyclical top.

Ethereum (ETH) experienced a significant price correction in early October 2025, dropping 21% to $3,448 before rebounding 10% amid a surge in institutional accumulation. On-chain data revealed that BitMine, an institutional investor, purchased 128,718

ETH
($480 million) through FalconX and Kraken, signaling confidence in the asset's fundamentals. This "buy-the-dip" activity aligns with historical patterns observed during previous bull cycles, where large holders increased exposure ahead of potential price breakouts Into The Cryptoverse[1].

Benjamin Cowen, founder of Into The Cryptoverse, attributed the dip to a "healthy reset" within Ethereum's bull structure. He noted that ETH's retesting of its weekly bull rally band mirrored pre-breakout behavior seen in 2016–2017 and 2020–2021 cycles. Cowen projected a potential move toward $5,300, contingent on sustained buyer momentum above key resistance levels. His analysis also highlighted the 2024–2025 cycle's similarity to the 2016–2017 cycle in duration (1,433 days), suggesting room for further upside if the timeline repeats Into The Cryptoverse[2].

Market dynamics reinforced the bullish narrative. CoinGlass data showed $618 million in liquidations over 24 hours, with $412 million from short positions, triggering a 10% rebound in ETH prices. The token's fully diluted valuation of $506 billion also benefited from renewed "buy the dip" sentiment. Meanwhile, the ETH/BTC pair rebounded from its daily logarithmic support trend, indicating a rotation back into altcoins Into The Cryptoverse[3].

However, risks remain tied to Bitcoin's (BTC) performance. Cowen emphasized that a consistent close below the 50-weekly moving average for BTC/USD would invalidate his macro bull scenario. Conversely, the parabolic rally in gold since August and potential capital rotation into crypto suggest a broader bullish outlook Into The Cryptoverse[4].

Whale activity further underscored Ethereum's strategic positioning. Lookonchain data revealed strong buy walls between $3,300 and $3,500, with large holders defending critical support levels. While ETH's RSI (36.7) remained in mildly oversold territory and MACD bearish momentum waned, the negative directional index (33.4) still dominated, indicating lingering downside pressure Alphractal[5].

The market's divergence between price action and whale behavior has sparked speculation about a potential rebound. Historical parallels, such as Ethereum's 2016 price pattern, suggest a "fake-out" phase could precede a significant breakout. Analysts caution that while the current accumulation may signal a cyclical top, the absence of traditional exchange withdrawal spikes-unlike past bull cycles-introduces uncertainty Alphractal[6].