Ethereum Profit-Taking in Progress, Longterm Bullish Case Stands

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Ether was unable to break above the trendline following its strong rally. In the medium term, our base case remains bullish, with expectations of over 100% return within a year. However, in the short term, some downward pressure and profit-taking are currently in play.

Two days ago, the Ethereum ETF experienced its largest single-day net outflow. If this turns into a trend, a broader selloff may begin. Should ETH approach the 3000 level, it could present a strong opportunity to re-enter from the bullish side.

There is also a chance of a trendline breakout occurring before a significant downward reaction. If that happens, it would suggest that demand for ETH is stronger than previously realized, and our base case may actually be too conservative.

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