Ethereum’s native token has fallen more than 20% in the past week amid heavy selling pressure. Analyst Michael van de Poppe noted a historical pattern where Ethereum bottomed before gold peaked, then fell another 30-40% before a major rally. In the current cycle, ETH appears to be following a similar path. The previous such cycle was followed by Ethereum outperforming Bitcoin with gains over 300%.
Ethereum’s native token has faced significant selling pressure, declining over 20% in the past week. This drop presents a stark contrast to the long-term narratives surrounding the blockchain’s future.
Analyst Michael van de Poppe noted a historical correlation, stating that the last time gold peaked, Ethereum had already bottomed months earlier (only to suffer a further 30-40% drop before turning around). Current market movements suggest Ethereum may be following a similar trajectory in this cycle.
The prior instance was followed by Ethereum significantly outperforming Bitcoin, with gains exceeding 300%. If this pattern repeats, it could signal a substantial future price movement for ETH.
Major holders are feeling the strain of the downturn. Bitmine Immersion Technologies, a significant ETH treasury holder, is now reportedly sitting on an estimated $6 billion in unrealized losses.
Institutional investment flows are also showing weakness. Ethereum spot exchange-traded funds recorded over $326 million in weekly net outflows, per data from SoSoValue. The price decline has occurred alongside these substantial exits.
Despite the sharp price correction, core investment narratives for Ethereum remain intact. The focus now shifts to underlying quality and historical market cycles to determine the asset’s next directional move.
