4 Apr, 2025
Ethereum (ETH) Is a ‘Gift’ at These Prices: Popular Trader Increases Exposure
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TL;DR

  • One well-known trader sees Ethereum’s dip to around $1,800 as a buying opportunity, while market fear echoes Warren Buffett’s advice to be greedy when others are fearful.
  • Despite optimism, Ethereum faces strong headwinds, which might result in a further price collapse in the near future.

Good Time to Buy?

Ethereum (ETH) has been experiencing a severe downturn in recent months, with its price dropping by over 20% on a 30-day scale. However, some industry participants remain unfazed by the pullback, viewing it as a perfect buying opportunity.

The X user Doctor Profit told his almost 400,000 followers on X that he increased his exposure to the asset when it was trading at $1,800. He even called the current conditions “a gift for the long term.”

The trader revealed using 10% of his available cash for the purchase and putting aside the remaining 90% “to add more in the coming days.”

“I buy once the streets are filled with blood, now is a good time,” he stated. 

It might seem scary, but some renowned investors have actually recommended such actions in times of fear. The famous billionaire Warren Buffett once said, “Be fearful when others are greedy and greedy when others are fearful.”

Shortly after disclosing his ETH purchase, Doctor Profit claimed that the price of the cryptocurrency is sitting at a historical support of around $1,800. 

“The same support I have mentioned several months ago, now we dumped to this area! With this massive correction and fear we are perfectly sitting at this support! Undervalued now,” he argued.

How About a Deeper Correction?

It is important to note that a few hours after the aforementioned post, ETH dipped below the depicted level and currently trades at around $1,770. For its part, the entire cryptocurrency market experienced another retreat following China’s reaction to Donald Trump’s latest trade tariffs. 

Several other factors, such as ETH’s exchange netflow, suggest that the cryptocurrency might continue to bleed in the short term. According to CryptoQuant data, inflows have surpassed outflows over the past week, signaling that investors are moving from self-custody to centralized platforms, thereby increasing immediate selling pressure.

The analytics firm recently estimated that the diminished network activity is one of the major reasons why ETH has been disappointing. This decline, combined with the plummeting average fees per transaction and per block, has pushed Ethereum’s burn rate to its lowest level since the Merge (September 2022). CryptoQuant estimated that since the Dencun upgrade last year, more ETH has been minted than burned, which explains the slump. 

The retreat of the whales is another worrying element that indicates more pain for the bulls. The renowned analyst Ali Martinez claimed that the number of large ETH transactions tanked by almost 64% from February 25 to March 31, signaling a substantial drop in whale activity. Additionally, large investors offloaded 760,000 ETH (worth over $1.3 billion) in the past two weeks alone.

Such sell-offs increase the circulating supply of the asset and could negatively impact its price (assuming demand doesn’t react accordingly). In addition, the whales’ actions may spread panic across the space, with smaller players following suit. 

The post Ethereum (ETH) Is a ‘Gift’ at These Prices: Popular Trader Increases Exposure appeared first on CryptoPotato.