Leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE), experienced modest declines during Memorial Day trading as market activity slowed down due to the U.S. holiday. Despite the pullback, some analysts are highlighting the dip—particularly in Ethereum—as a potential buying opportunity amid broader bullish sentiment in the crypto space.
Memorial Day Market Movement
On May 27, Bitcoin slipped just under 1% to trade around $108,000 after hitting an intraday high of $110,376.88. Ethereum followed a similar trajectory, briefly touching $2,700 in recent days before dipping to about $2,523, representing a 1.41% decline. Dogecoin also saw red, falling approximately 2.6% to around $0.2203.
Although these drops are relatively minor, they triggered over $190 million in liquidations across the cryptocurrency market in the last 24 hours. Notably, $136 million of those liquidations were long positions, indicating that many traders were betting on higher prices before being wiped out by the unexpected pullback.
Analysts Remain Bullish on Ethereum
While the market dip unsettled some traders, analysts such as Michaël van de Poppe see it as an opportunity, especially for Ethereum. Van de Poppe highlighted that Ethereum’s recent rally—from $1,800 to $2,700—was significant and that a correction is both healthy and expected.
“If there’s a 10-20% correction, that’s pretty normal,” van de Poppe said. “This could be a tremendous opportunity to get positioned into Ethereum.”
This sentiment is echoed by blockchain analytics firm CryptoQuant, which noted that while overleveraged short-term traders were liquidated, long-term holders (LTHs) were quietly accumulating more BTC and ETH during the price reset.
“Long-term investors are using this period of forced selling to increase their exposure,” CryptoQuant reported.
Market Sentiment and Trading Behavior
The Crypto Fear and Greed Index showed that market sentiment remains in the “Greed” zone, suggesting that traders are still optimistic about crypto’s prospects despite short-term volatility. Moreover, trading volumes in both Bitcoin and Ethereum ticked up slightly—by 5.47% and 3.54%, respectively—indicating some renewed interest during the dip.
On Binance, nearly 58% of top trader accounts with open BTC positions were short, reflecting cautious sentiment in the short term. Still, Bitcoin’s Open Interest remained stable over the last 24 hours and is up nearly 6% on the week, suggesting that traders are not exiting the market entirely but are adjusting positions amid price swings.
Altcoins and Gainers
While the big three—BTC, ETH, and DOGE—saw losses, a few altcoins managed to stay in the green:
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Quant (QNT): +8.68%, trading at $103.62
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Jupiter (JUP): +7.30%, priced at $0.6044
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Four (FORM): +4.87%, reaching $3.01
These altcoins defied the broader market downtrend and may indicate growing interest in niche projects amid macro consolidation.
Global Crypto Market Snapshot
The total global cryptocurrency market cap now stands at $3.42 trillion, marking a 0.72% decrease over the past 24 hours. Despite the short-term contraction, this figure remains substantially higher than it was just a few months ago, reflecting strong long-term momentum.
Meanwhile, U.S. stock markets—including the New York Stock Exchange and Nasdaq—were closed on Memorial Day, leaving crypto markets as one of the few active arenas for traders during the holiday.
Futures trading suggests optimism ahead of the next session, with Dow Jones, S&P 500, and Nasdaq futures all showing positive momentum. This may spill over into crypto markets as regular trading resumes.
What’s Next for Crypto?
The post-holiday period could see renewed interest and volatility in cryptocurrency markets. Analysts advise watching key support levels for Bitcoin around $107,000 and Ethereum at $2,400. If these levels hold, a rebound may follow.
Ethereum’s pullback under $2,400 is particularly notable for investors, as it’s seen as a psychological level. Accumulation by long-term holders suggests confidence in Ethereum’s long-term potential, especially as institutional adoption and use cases continue to grow.
Final Thoughts
While Memorial Day brought a pause in traditional financial markets, crypto remained active—though slightly bearish. Bitcoin, Ethereum, and Dogecoin each dipped, but this movement is being interpreted by analysts not as a red flag, but as a possible setup for a bullish continuation.
For investors with a long-term outlook, dips like these are often seen as strategic entry points. As always, market participants should conduct thorough research and consider both risks and opportunities before making investment decisions.
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