Ethereum's recent slide below $3,400 has raised some eyebrows, but many market strategists aren't worried. They see this as normal market volatility, not a sign of a long-term decline.
Despite a broader crypto market downturn influenced by Bitcoin's price drop, analysts believe Ethereum's core strengths remain intact. These include consistent institutional investment, robust network activity, and a shrinking supply, all of which point to a strong foundation for future growth.
South Korean firm Eugene Investments highlights that despite short-term price fluctuations, factors like ETF inflows and increased on-chain engagement are keeping investor sentiment positive. While some technical indicators suggest the asset is overbought, the firm believes the overall bullish trend is more significant.
Some traders are viewing the price drop as a buying opportunity. For example, Chinese trader Eugene Ng Ah Sio re-entered his long position on ETH after Bitcoin recovered, targeting a potential move back to the $3,800–$4,000 range.
Institutional players are also reinforcing this optimism by continuing to add ETH to their portfolios. Companies like SharpLink Gaming and BitMine Immersion Technologies are steadily buying, which adds to buying pressure and signals long-term confidence.
For many, this recent dip is not a sign of weakness, but simply a temporary pause before Ethereum continues its upward trajectory.
August 2025, Cryptoniteuae