Ethereum and Dogecoin Prices Drop as Crypto Market Cools Off
Altcoins Experience Correction After Recent Rally
Overview of Market Movements
In the early hours of Tuesday, altcoins such as ethereum (ETH) and Dogecoin (DOGE) experienced a decline, reversing some of the gains made during last week’s rally spurred by President Trump’s recent stablecoin legislation.
Among the top 20 cryptocurrencies by market capitalization, Hedera (HBAR) faced the most significant drop, falling by 5.2%, closely followed by Hyperliquid (HYPE), which decreased by 5.1%, according to data from CoinGecko.
ethereum saw a 2.6% decrease, Chainlink (LINK) dropped by 3.3%, and Dogecoin fell by 1.5% over the past 24 hours. Other notable declines included Stellar (XLM) down 4.1%, Cardano (ADA) down 2.8%, and Sui (SUI) also down by 2.8%.
This market correction comes just a week after XRP surged to an unprecedented high of over $3.41, breaking a seven-year record, a move analysts attributed to renewed institutional interest following Trump’s pro-crypto policy initiatives.
“Healthy Correction” After Significant Gains
The recent pullback is being viewed as a necessary adjustment following substantial gains in recent weeks. Illia Otychenko, Lead Analyst at CEX.IO, remarked that such corrections are typical after strong rallies, particularly when momentum indicators like the daily Relative Strength Index (RSI) indicate overbought conditions.
Otychenko emphasized that these corrections should not be interpreted as signs of weakness; rather, they may be essential for establishing a solid foundation for future upward movements. He pointed to decreasing selling pressure on ethereum and the formation of a “Golden Cross” pattern in XRP as positive technical signals.
Arthur Azizov, founder of B2 Ventures, highlighted XRP’s remarkable momentum leading up to Tuesday’s decline, noting that the rally had been uninterrupted, making a correction quite normal. He suggested that the ideal correction zone for XRP would be around $2.64, which aligns with a strong support level. As long as XRP remains above $1.90, the overall trend is still considered bullish.
Post-Euphoria Adjustment Amid Regulatory Developments
Bitcoin demonstrated resilience, gaining 1% to surpass $119,000, despite pulling back from last Monday’s record high of $123,000, as reported by CoinGecko. Market analysts describe this as a natural pause following the recent signing of the GENIUS Act, which establishes a regulatory framework for stablecoins in the U.S.
Shawn Young, Chief Analyst at MEXC, noted that this pullback appears to be more of a temporary adjustment rather than a fundamental shift, characterizing it as a typical cooling-off period in the absence of new catalysts. He also observed that altcoin open interest is nearing that of Bitcoin, a trend that has historically preceded market corrections when positioning becomes overly aggressive.
Young pointed out that the selling pressure, which was previously concentrated on Binance, has now spread to Coinbase, indicating a broader trend of derisking amid uncertain market conditions.
Federal Reserve Uncertainty Influences Market Sentiment
The market correction is also occurring against the backdrop of increasing scrutiny on Federal Reserve Chair Jerome Powell, who is scheduled to deliver his final public address on banking regulation before the Fed’s 10-day blackout period.
With markets anticipating only two rate cuts this year, Powell’s remarks could significantly impact both crypto and traditional asset markets. Young noted that while there is a 56% probability of a rate cut in September, Powell’s tone could further shape risk sentiment.
Additionally, reports have surfaced that President Trump drafted a resignation letter for the Fed chair last week, with speculation that he may appoint a “shadow” successor to advocate for quicker rate cuts, which typically benefit risk assets like Bitcoin.
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