Ethereum’s 15% Dip Signals Rally Toward New All-Time High
As Ethereum (ETH) rebounded above $4,000 in early August, its price surged to a 2023 high near $4,790 before falling 15.2% to $4,060 by August 20, triggering $1.6 billion in long liquidations. On-chain data from Glassnode shows profit-taking as the primary driver: queued unstaking jumped from 410,000 ETH to 916,000 ETH between Aug. 3 and Aug. 14, with an average staking cost of $2,800.
Despite the correction, market indicators point to strength. The ETH/BTC rate remains above its five-day moving average, and Ethereum dominates derivatives markets, accounting for 67% of open interest in crypto futures. Meanwhile, macroeconomic trends push valuations of high-growth assets higher, suggesting further upside for ETH.
A key differentiator for Ethereum treasuries is sustainable cash flow through staking yields (around 4%) and DeFi lending rates (5–10%). Unlike Bitcoin treasury companies, which rely on external financing and hold non-cash-flow assets, Ethereum treasury models can generate internal revenue without asset sales. This model may support a revaluation of ETH in the coming months.
In summary, Ethereum’s recent pullback represents a buying opportunity. With strong on-chain momentum and a robust treasury framework, Ether looks poised to challenge record highs above $4,800.
Bullish
Ethereum’s recent 15% price drop stems primarily from profit-taking by early stakers after a rapid rally. On-chain data shows queued unstaking hitting +1 SD of active realized price — an indicator that previously preceded only temporary pullbacks in March 2024 before resuming upward momentum. Market structure remains intact: ETH/BTC stays above its five-day moving average, and Ethereum futures hold a 67% share of open interest, highlighting continued capital inflows.
Furthermore, sustainable staking and DeFi yields underpin intrinsic value, distinguishing ETH treasuries from Bitcoin treasury models reliant on external financing. Historically, similar pullbacks in April and July 2024 offered profitable entry points, as rallies accelerated once liquidations subsided. Given strong derivatives positioning, favorable macro valuation trends for growth assets, and an emerging cash-flow model for ETH treasuries, the current dip is a buying opportunity. Traders may expect renewed strength as staking incentives and regulatory catalysts (GENIUS Act, Project Crypto) drive demand. In the short term, volatility could remain elevated, but long-term fundamentals signal continued upside toward new all-time highs.