Ethereum It has been on a downward trend since hitting a record high in August. However, this price decline was accelerated by the massive market crash on October 10th. After a long period of bearish performance and steady decline, altcoins are finally experiencing a complete liquidity reset.
Will Ethereum’s price action return to zero after the liquidity reset?
Major altcoins and networks are currently reaching a critical juncture, as ongoing market-wide volatility casts a shadow over Ethereum. Altcoin Vector is an institutional-level reporter and signal provider for social media platform X. point to Significant changes in ETH market dynamics.
of Ethereum market structure Things are changing dramatically as liquidity across exchanges, DeFi platforms, and major on-chain channels is reset. According to Altcoin Vector, ETH liquidity has developed into a full reset, an important pattern that historically always occurs before a big bottom in altcoin prices.
This complete reset of structural liquidity is not just a temporary suspension. This is a sign of a thorough rebalancing of ETH movements, transactions, and flows within the rapidly growing ecosystem. As a result, Ethereum is currently at a critical juncture where reduced liquidity could either lay the foundations for a strong comeback or expose it to more severe price volatility in the future.
Altcoin Vector emphasized that following a liquidity collapse, the following typically occurs: several weeks of bottoming out Not structural destruction. However, as long as liquidity recovers, the window for correction/bottoming will remain open. On the other hand, major altcoins are currently returning to their market stage.
Altcoin Vector, which is in the bottoming stage, declares that it is only a matter of time before the next expansion leg begins, especially once liquidity rebuilds in the coming weeks. However, this pressing trend still comes with risks.
If liquidity takes a long time to recover, the slow grind can remain active for a long time. In such a pattern, the structure of ETH could become increasingly vulnerable against price fluctuations.
When to buy ETH
When the market turns bearish, it becomes increasingly difficult to determine the ideal time to acquire coins. As the price of Ethereum suffers from a downward trend, builder and crypto investor Leo Lanza said: outlined It is a good time to buy ETH to minimize losses.
In the X post, Lanza said that the best moment to buy altcoins is when ETH trades 1:1 with the ecosystem Total Value Locked (TVL), as has often been the case in the past. According to investors, this is the exact point at which the market loses sight of the true value that Ethereum holds, allowing for strategic acquisitions and positioning. before a significant price increase.
Lanza phone ETH is a commodity whose supply is unstable. As more value is secured across the Ethereum ecosystem, its supply cannot keep up with institutional demand. Wall Street is currently building on the network, with trillions of assets tokenized on-chain. This high demand will cause relentless upward pressure on ETH as a security. global finance.
Featured image from Peakpx, chart from Tradingview.com
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