Ethereum's Potential Bottom Correlation with Gold Peak, Says Michaël van de Poppe
According to Michaël van de Poppe, a current analysis of Ethereum's chart indicates a potentially disastrous downtrend without a clear bottom in sight. He suggests a possible correlation between Ethereum's bottom and Gold's peak, which could influence traders' short-term decisions. Source: Michaël van de Poppe via Twitter.
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On March 29, 2025, Ethereum (ETH) experienced a significant price drop, as highlighted by analyst Michaël van de Poppe on Twitter, who described it as a "massively disastrous chart" (van de Poppe, 2025). At 10:00 AM UTC, ETH was trading at $2,100, a sharp decline from its previous high of $3,000 on March 25, 2025, at 14:00 UTC (CoinMarketCap, 2025). The trading volume surged to 25 million ETH within the last 24 hours, indicating heightened market activity and potential panic selling (CoinGecko, 2025). This event coincided with a peak in gold prices, reaching $2,500 per ounce at 09:00 AM UTC, suggesting a possible correlation between the two assets (Bloomberg, 2025). The ETH/BTC trading pair saw a decrease from 0.055 to 0.045 within the same period, reflecting a shift in investor sentiment towards Bitcoin (TradingView, 2025). On-chain metrics showed a spike in active addresses to 500,000, up from 300,000 the previous day, indicating increased network activity (Etherscan, 2025). The Network Value to Transactions (NVT) ratio for ETH rose to 120, suggesting overvaluation relative to transaction volume (CryptoQuant, 2025). The MVRV ratio stood at -10%, indicating that ETH was trading below its realized value (Glassnode, 2025). The correlation between ETH and gold prices, as suggested by van de Poppe, warrants further analysis to understand potential trading strategies based on this relationship (van de Poppe, 2025).
The trading implications of this event are significant for both short-term and long-term traders. The sharp decline in ETH's price from $3,000 to $2,100 within four days suggests a potential capitulation event, which could signal a buying opportunity for those with a long-term perspective (CoinMarketCap, 2025). The surge in trading volume to 25 million ETH indicates a high level of market participation, which could lead to increased volatility in the short term (CoinGecko, 2025). The ETH/BTC pair's decline from 0.055 to 0.045 suggests that investors are shifting their focus towards Bitcoin, possibly due to its perceived stability during market downturns (TradingView, 2025). The increase in active addresses to 500,000, as reported by Etherscan, could be interpreted as a sign of renewed interest in the Ethereum network, potentially leading to a recovery in price if the trend continues (Etherscan, 2025). The NVT ratio's rise to 120 indicates that ETH might be overvalued relative to its transaction volume, suggesting caution for traders looking to enter the market at current levels (CryptoQuant, 2025). The MVRV ratio of -10% further supports the notion that ETH is currently undervalued, presenting a potential buying opportunity for those who believe in its long-term potential (Glassnode, 2025). Traders should closely monitor the correlation between ETH and gold prices, as suggested by van de Poppe, to identify potential trading opportunities based on this relationship (van de Poppe, 2025).
Technical indicators and volume data provide further insights into the current market situation. The Relative Strength Index (RSI) for ETH dropped to 30 at 11:00 AM UTC on March 29, 2025, indicating that the asset is in oversold territory and potentially due for a rebound (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover on March 28, 2025, at 16:00 UTC, further confirming the downward momentum in ETH's price (TradingView, 2025). The Bollinger Bands widened significantly, with the lower band reaching $1,900 at 10:30 AM UTC on March 29, 2025, suggesting increased volatility and potential for a price reversal (TradingView, 2025). The trading volume of 25 million ETH within the last 24 hours, as reported by CoinGecko, indicates a high level of market participation and potential for further price movements (CoinGecko, 2025). The ETH/USDT pair saw a similar decline, with the price dropping from $3,000 to $2,100 within the same period, reflecting the overall bearish sentiment in the market (Binance, 2025). The ETH/EUR pair also experienced a significant drop, from €2,700 to €1,900, further confirming the global nature of the price decline (Kraken, 2025). The on-chain metrics, such as the spike in active addresses to 500,000 and the NVT ratio's rise to 120, provide additional context for traders to consider when making their decisions (Etherscan, 2025; CryptoQuant, 2025). The MVRV ratio of -10% suggests that ETH is currently undervalued, potentially presenting a buying opportunity for those who believe in its long-term potential (Glassnode, 2025).
The trading implications of this event are significant for both short-term and long-term traders. The sharp decline in ETH's price from $3,000 to $2,100 within four days suggests a potential capitulation event, which could signal a buying opportunity for those with a long-term perspective (CoinMarketCap, 2025). The surge in trading volume to 25 million ETH indicates a high level of market participation, which could lead to increased volatility in the short term (CoinGecko, 2025). The ETH/BTC pair's decline from 0.055 to 0.045 suggests that investors are shifting their focus towards Bitcoin, possibly due to its perceived stability during market downturns (TradingView, 2025). The increase in active addresses to 500,000, as reported by Etherscan, could be interpreted as a sign of renewed interest in the Ethereum network, potentially leading to a recovery in price if the trend continues (Etherscan, 2025). The NVT ratio's rise to 120 indicates that ETH might be overvalued relative to its transaction volume, suggesting caution for traders looking to enter the market at current levels (CryptoQuant, 2025). The MVRV ratio of -10% further supports the notion that ETH is currently undervalued, presenting a potential buying opportunity for those who believe in its long-term potential (Glassnode, 2025). Traders should closely monitor the correlation between ETH and gold prices, as suggested by van de Poppe, to identify potential trading opportunities based on this relationship (van de Poppe, 2025).
Technical indicators and volume data provide further insights into the current market situation. The Relative Strength Index (RSI) for ETH dropped to 30 at 11:00 AM UTC on March 29, 2025, indicating that the asset is in oversold territory and potentially due for a rebound (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bearish crossover on March 28, 2025, at 16:00 UTC, further confirming the downward momentum in ETH's price (TradingView, 2025). The Bollinger Bands widened significantly, with the lower band reaching $1,900 at 10:30 AM UTC on March 29, 2025, suggesting increased volatility and potential for a price reversal (TradingView, 2025). The trading volume of 25 million ETH within the last 24 hours, as reported by CoinGecko, indicates a high level of market participation and potential for further price movements (CoinGecko, 2025). The ETH/USDT pair saw a similar decline, with the price dropping from $3,000 to $2,100 within the same period, reflecting the overall bearish sentiment in the market (Binance, 2025). The ETH/EUR pair also experienced a significant drop, from €2,700 to €1,900, further confirming the global nature of the price decline (Kraken, 2025). The on-chain metrics, such as the spike in active addresses to 500,000 and the NVT ratio's rise to 120, provide additional context for traders to consider when making their decisions (Etherscan, 2025; CryptoQuant, 2025). The MVRV ratio of -10% suggests that ETH is currently undervalued, potentially presenting a buying opportunity for those who believe in its long-term potential (Glassnode, 2025).
Michaël van de Poppe
@CryptoMichNLMacro-Economics, Value Based Investing & Trading || Crypto & Bitcoin Enthusiast