Popular altcoins suffered a harsh reversal on Sunday, Sep. 29 as the recent Bitcoin surge stalled a few points below $66,000.

Jasmy, Daddy Tate, and Reef reverse

JasmyCoin (JASMY), the popular Japanese coin, retreated to $0.02326, down by 8% from its highest level on Saturday. 

Daddy Tate (DADDY), the meme coin associated with controversial social media personality Andrew Tate, fell to an intraday low of $0.1147. Reef (REEF) dropped to $0.0052. 

Some of this month’s top gainers also dropped sharply — a sign that some traders were starting to take profits. Moo Deng (MOODENG), the viral hippo-themed meme coin, declined by 17% while LandWolf (WOLF) fell by over 10%.

As a result, the total market cap of all cryptocurrencies tracked by CoinGecko retreated by almost 2% to $2.4 trillion. 

Still, cryptocurrencies have been some of the best assets this month. Bitcoin rose by over 20% from its lowest point during the month and remains about 10% below the all-time high. The rally explains why most altcoins have bounced back since in the last bullish cycles, many of these coins tend to do better. 

Santiment warning

There are two possible reasons why altcoins like Jasmy, Reef, and Daddy Tate retreated. First, Santiment warned that Bitcoin may struggle to hit its all-time high, citing the rising bullish posts about Bitcoin on social media. 

While bullish sentiment on social media is often seen as good, Santiment warned that markets historically move in the opposite direction of crowd expectations.

Technically, there are also concerns that Bitcoin may find resistance at the descending trendline that connects the highest swings since March. Failure to flip that level would likely push it substantially lower, dragging other altcoins with it. 

On the positive side, a break above that level — as some analysts predict — will push it to the next resistance point at $70,000 followed by its all-time high. 

Second, these tokens retreated because of profit-taking among investors because of the recent surge. At its highest point this month, Reef was up by over 1,018% from its lowest point. Similarly, Jasmy was up by 48% while Daddy Tate was up by 144%.

Historically, altcoins tend to retreat after staging a strong rally. For example, on-chain data shows that a Jasmy whale moved tokens worth $1.5 million to Coinbase. The other three wallets moved tokens with a combined value of $4.5 million to Coinbase in the last 24 hours.

Ethereum (ETH) price has experienced a recent surge, hitting $2,600. The trend is bullish, but whales or institutional investors sold off approximately $45 million worth of ETH on Saturday.

Ethereum Whales Sell $45 Million ETH as ETH Price Hits $2,600

In a recent development, two whales have sold large amounts of Ethereum (ETH). According to a report from Lookonchain, a wallet associated with Cumberland moved 11,800 ETH, valued at approximately $31.88 million, to Coinbase. This transaction occurred about seven hours ago. Additionally, ParaFi Capital has withdrawn 5,134 ETH, worth an estimated $13.83 million, from the Lido platform. This ETH was subsequently transferred to Coinbase Prime around six hours ago.

2 institutions are selling $ETH!

A wallet related to #Cumberland deposited 11,800 $ETH($31.88M) into #Coinbase 7 hours ago.#ParaFiCapital withdrew 5,134 $ETH($13.83M) from #Lido and deposited it into #CoinbasePrime 6 hours ago.

Address:… pic.twitter.com/zuOe68IIuJ

— Lookonchain (@lookonchain) September 28, 2024

The significant movements of ETH have raised concerns, particularly in the crypto community, where institutional activity often signals market shifts. Cumberland and ParaFi Capital, both recognized entities in the crypto industry, appear to be adjusting their ETH positions.

ETH Price to Hit $20K: Analyst Forecasts

Crypto analyst Julien Bittel, CFA, has forecasted a significant surge for Ethereum, potentially hitting $20,000 by early 2025. Comparing ETH’s 2023 trend with current data, he observes striking similarities, suggesting a potential repeat of last year’s bullish movement. 

Bittel shared a chart that illustrates Ethereum’s performance from January 2023 to March 2024, mirroring its present trajectory. If this pattern holds, the ETH price forecast could see substantial gains by year-end, pushing towards the $20,000 mark by January 2025. 

ETH price has slightly increased to $2,671.43, registering a modest rise of 0.05% over the last 24 hours. Despite this small uptick, the price remains within the range of $2,643 and $2,728 during the same period.

The chart reflects fluctuations in market volatility between these levels, with notable highs near $2,700 and dips toward $2,660. Ethereum’s overall performance displays resilience, hovering near the $2,670 mark as it navigates market pressures.

Despite institutional selling, Ethereum shows resilience with a modest price rise. The $20,000 forecast by 2025 adds optimism, although market volatility persists. Ethereum’s near-term stability suggests potential growth, even as institutional investors adjust their positions.

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