Ethereum & Dogecoin Dip as Altcoins Take a Breather—Buying Opportunity or Bear Trap?
Crypto markets hit the brakes—again. After weeks of relentless rallies, Ethereum, Dogecoin, and other major altcoins are bleeding out. Is this the cool-off before the next leg up, or are bagholders about to get rekt?
The Pullback Nobody Wanted (But Everyone Expected)
Traders cashed in gains as Bitcoin dominance wobbled—classic 'risk-off' behavior. Memecoins got hit hardest, because when liquidity dries up, speculation dies first. Meanwhile, ETH staking yields keep printing, because the rich get richer even in a downturn.
Institutions Watching, Retail Panicking
Whales aren't selling—they're accumulating. The dip? Just another discount window for smart money before the next ETF frenzy. Meanwhile, Reddit threads overflow with diamond-handed hopium. Some things never change.
The Bottom Line
Volatility is crypto's tax on impatience. This isn't 2022's carnage—just markets doing what they do between halvings and hype cycles. (And if you're still trading DOGE like it's 2021, maybe stick to lottery tickets.)
"Healthy correction" following euphoric gains
The pullback "appears to be a healthy correction following strong double-digit gains in recent weeks," Illia Otychenko, Lead Analyst at CEX.IO, told Decrypt.
"After such rallies, it's common to see short-term profit-taking, especially while momentum indicators like the daily RSI are showing these assets reaching overbought levels,” he said.
The analyst noted that "rather than signaling weakness, such corrections could be necessary to solidify the foundations for a sustained rally," pointing to ETH's declining selling pressure and XRP's formation of a "Golden Cross" pattern as bullish technical indicators.
Arthur Azizov, founder of B2 Ventures, pointed to XRP's exceptional momentum prior to Tuesday's pullback, saying “that the rally has been completely uninterrupted — not even a minor pullback.”
"At this stage, it WOULD actually be quite normal to see a bit of a correction,” Azizov told Decrypt. “The ideal zone for it looks to be around $2.64, which also lines up with a strong support level."
"As long as XRP doesn't drop below $1.90, the overall trend is still bullish, which is important to keep in mind,” he added.
Post-euphoria "hangover" amid regulatory catalysts
Bitcoin, meanwhile, showed resilience as it nudged a 1% gain to over $119,000, after pulling back from last Monday's record high of $123,000, according to CoinGecko.
Market watchers describe it as a natural pause following last Friday's signing of the GENIUS Act, America's first major piece of crypto legislation that establishes a regulatory framework for stablecoins.
"Following a week of euphoria driven by headlines, this pullback appears to be more of a hangover than a structural shift — a typical cooling off period in the absence of new catalysts," Shawn Young, Chief Analyst at MEXC, told Decrypt.
Young noted that altcoin open interest is "approaching Bitcoin's" - a dynamic that has historically coincided with market corrections when positioning becomes "too aggressive."
The analyst also pointed to shifting market dynamics, saying "spot selling pressure, which was concentrated on Binance last week, has now expanded to Coinbase — another sign of derisking amid uncertain footing."
Fed uncertainty adds market pressure
The correction also comes amid rising attention on Federal Reserve Chair Jerome Powell, who is set to deliver his final public address on banking regulation Tuesday before the Fed's 10-day blackout period.
With markets pricing in just two rate cuts this year, according to CME's FedWatch tool, Powell's tone could be pivotal across crypto and traditional assets, analysts say.
“While markets still lean towards a September rate cut, currently priced at 56%, Powell's tone could further influence risk sentiment,” Young said. "Therefore, with the news cycle slowing down and Powell in the public eye, risk management isn't a choice — it's the strategy."
President TRUMP reportedly drafted a resignation letter for the Fed chair last week, with some analysts suggesting the president may name a "shadow" successor to pressure for faster rate cuts that typically boost risk assets like Bitcoin.
