Behind Ethereum surpassing $2900: The hidden concern of a 13.6% short-term decline

According to the latest news, ETH/USDT is currently trading at $2907.84, successfully breaking through the $2900 threshold. However, this breakthrough was not smooth sailing—there was a 3.29% decline within 24 hours, and a 13.60% drop over the past 7 days. What market conditions are reflected behind this phenomenon of price surging and then pulling back?

Contradictory Phenomenon of Price Breakthrough and Decline

Short-term tug-of-war

After reaching $2907.84, ETH did not form obvious upward momentum. From multiple timeframes, this breakout appears somewhat weak:

This data sequence indicates a problem: although ETH broke through $2900, it did not gain sufficient upward strength. Instead, the longer-term (7 days) downward trend is more apparent, suggesting that the $2900 level may be just a short-term rebound rather than a trend reversal signal.

Market enthusiasm still exists

Despite price pressure, market participation has not significantly declined. According to the latest data, ETH’s 24-hour trading volume reached $3.313 billion, an 11.80% increase from the previous day. This indicates that although the price is falling, trading activity has actually increased, possibly reflecting market probing at the bottom area with tentative buying.

Market Fundamentals Overview

Market cap and share stability

As the second-largest cryptocurrency by market cap, ETH’s current market value is $34.929 billion, accounting for 11.77% of the market. This share remains relatively stable, indicating that Ethereum’s position in the overall crypto market has not changed due to short-term price fluctuations.

Supply structure characteristics

ETH currently has a circulating supply of 120,694,540 tokens, which are unlimited supply tokens. This means ETH faces long-term inflation pressure, a factor investors need to consider when evaluating its long-term value.

Key Focus for Follow-up

From a technical perspective, the key question is: can the $2900 level form an effective support? If the price continues to decline, recent lows may become more important reference points. Meanwhile, the increase in trading volume indicates rising market sensitivity to price movements, which could signal a more distinct directional choice ahead.

Summary

ETH breaking through $2900 should be seen as a positive signal, but the 13.6% decline over 7 days and the downward trend in 24 hours suggest that this breakout is more likely a short-term rebound rather than a trend reversal. Market trading enthusiasm remains, but the direction is still unclear. Investors need to watch whether the $2900 level can be effectively defended and whether a more stable support can be established next.