- Ethereum has pulled back nearly 5.62% from its local high of $2,597, as weak hands cashed out.
- Could this “dip” be signaling a healthy retracement, or is it the start of a deeper pullback?
In crypto, the “one sigma rule” holds strong: Every sharp sell-off becomes fresh ammo for dip buyers eyeing discounted supply.
Ethereum [ETH] just dropped 5.62% from its local high of $2,597 on the 10th of May, tapping into short-term liquidity.
Will ETH honor the sigma rule here? If so, this dip might not just be a flush, but a springboard.
Short-term weakness, long-term opportunity
Glassnode data shows that as ETH tapped $2,580, the supply at this price point surged from 1 million to 1.3 million ETH.
In other words, about 300,000 ETH were offloaded right around that cost basis, likely triggering a wave of selling into a key liquidity zone.
No surprises here. As AMBCrypto flagged, short-term holders (wallets holding ETH <155 days) saw their aggregate cost basis flip below spot as Ethereum tested its early-March high of $2,546.
This setup was textbook: Price tags hit STH breakeven, weak hands hit the sell button, and short-term realized profits spike.
Source: Glassnode
Consequently, the long side takes a beating. In the last 24 hours alone, a brutal $115.51 million in long positions were liquidated, accounting for a staggering 68% of total liquidations.
On the flip side, Abraxas Capital may have been quietly loading the dip. On-chain flows suggest the fund hoovered up roughly $400 million worth of Ethereum over the past three days.
That pegs their average entry around $2,580, amounting to 155k ETH – just as retail investors were selling into resistance. Looks like they’re accumulating for the next macro leg.
Flush, reset, reload: Is Ethereum gearing up again?
As AMBCrypto pointed out, the broader market is hitting the reset button post-U.S.-China trade deal, with macro forces pushing strategic investors to reposition their stacks.
Risk capital is pulling the ripcord for now. It is reflected in a 1.77% dip in the total crypto market cap to $3.71 trillion at press time, while Bitcoi [BTC] dominance slips 3% to 62.94% from its recent peak.
Naturally, Ethereum is feeling the heat, down about 5% on the day.
But under the surface, things look less bearish. New address count ripped 12.26% higher to 103,815, hinting at renewed network traction.
Source: Glassnode
Meanwhile, whale addresses (>1k ETH) saw a minor uptick, with six new wallets entering the fray.
Clearly, smart money’s playing the long game. If macro winds stabilize and the sigma-rule holds, Ethereum could be gearing up for a clean breakout past the $2,580 resistance.