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Ethereum’s Dramatic Price Shift: Can ETH Surpass $2,580 Again? The Plot Thickens!

BBG News
  • Ethereum, once basking in its peak of $2,597, has now fallen back by a modest 5.62%, as the faint-hearted rushed to cash out.
  • Is this “dip” a sign of a healthy correction, or merely the precursor to a deeper tumble? Your guess is as good as mine.

In the wild world of crypto, there’s a rule that’s as reliable as a broken clock: The “one sigma rule” prevails. Every sharp sell-off, no matter how dramatic, simply hands fresh ammo to the eager dip buyers, ready to scoop up the discounted loot.

Ethereum [ETH], that ever-volatile beast, recently took a 5.62% nosedive from its local high of $2,597 on May 10th, as it desperately scavenged short-term liquidity. Classic move.

Now, here’s the million-dollar question: Will ETH honor the sacred sigma rule? If so, this dip could be more than just a flush—could it be the springboard for the next big leap? Only time will tell, but I’m not holding my breath.

Short-Term Pain, Long-Term Gain?

According to Glassnode, when ETH touched the $2,580 mark, the supply at that level surged from 1 million to 1.3 million ETH. What does that tell us? Well, approximately 300,000 ETH were dumped right around that price, triggering a delightful wave of selling into a critical liquidity zone. The usual drama.

No surprises here. As AMBCrypto aptly pointed out, short-term holders—those who barely remember what a “long-term hold” feels like—watched their cost basis flip below spot prices as Ethereum tested its early-March peak of $2,546. It was a beautiful setup. Price tags hit the breakeven point for weak hands, and naturally, they hit the sell button. Poof, short-term profits vanished in the wind.

Meanwhile, the long-side investors were getting smacked around. In just 24 hours, a brutal $115.51 million in long positions were liquidated, accounting for a staggering 68% of total liquidations. Ouch. Someone’s losing sleep tonight.

But hold your horses. On the flip side, Abraxas Capital may have been silently loading up on this dip. According to on-chain flows, the fund scooped up approximately $400 million worth of Ethereum in the past three days. Let that sink in. Their average entry price? $2,580, which means they snagged 155k ETH just as retail investors were sprinting for the exit. Classic move—buy low, sell high, right?

Flush, Reset, Reload: Is Ethereum Poised for Its Comeback?

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Meanwhile, whale addresses (>1k ETH) saw a minor uptick, with six new wallets joining the fray. Big players, indeed. Perhaps they’re just getting started.

In the end, the smart money seems to be playing the long game. If macro conditions stabilize and the sigma-rule holds true, Ethereum might just be gearing up for a clean breakout past the $2,580 resistance. Or maybe it’ll crash again. Who knows? Grab your popcorn, folks—it’s going to be a bumpy ride.

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2025-05-13 13:35

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