The market downturn experienced yesterday is analyzed as being driven by short-term factors, with limited impact on fundamentals. Bullish signals from Bitcoin are expected to spill over into ETH, and the application of AI technology suggests new investment opportunities. The overall market bias is neutral to slightly bullish.

Fundamental Analysis As of October 12, 2025, the key news from the previous day's cryptocurrency market and analysis of its impact on ETH price are as follows: * Bitcoin Re-tests Golden Cross, Analysts Suggest Potential for Major Rally According to yesterday's news, Bitcoin is re-testing the "Golden Cross," a pattern often preceding past bull runs. Analysts note that this technical pattern historically led to price surges of 2,200% (2017) and 1,190% (2020). They suggest that if Bitcoin can maintain its current approximate level of $110,000, it could trigger a further parabolic rise. This Bitcoin movement has the potential to influence overall market sentiment, particularly encouraging inflows into the altcoin market. As ETH tends to correlate strongly with Bitcoin, a bullish signal for BTC could also contribute to an increase in ETH's price. * Bitcoin Targets $114,000 Liquidity Zone, Traders Bet on BTC Price Rebound With Bitcoin aiming for the $114,000 liquidity zone ahead of the weekly close, traders are anticipating a BTC price rebound in the coming week. Despite a significant $19 billion liquidation event, Bitcoin's bullish uptrend is expected to remain intact. This optimistic outlook suggests market resilience and potential institutional engagement, which could positively impact the altcoin market, including ETH. While short-term price fluctuations may occur, the expectation of a medium- to long-term upward trend could support ETH's price stabilization and growth. * Market Crash Has "No Impact on Long-Term Fundamentals," Analysts Say Despite Friday's market crash, where some cryptocurrencies plunged by as much as 95% within 24 hours, analysts from The Kobeissi Letter assess that it does not signal a long-term bear market or deteriorating fundamentals. They point to a combination of short-term factors as the trigger, specifically "excessive leverage and risk," compounded by President Trump's announcement of 100% tariffs on China. This analysis inspires confidence in market resilience and suggests that ETH could also recover quickly from the short-term downturn. The view that fundamentals remain unaffected could restore investor confidence and encourage investment in ETH. * Market Crash Has "No Impact on Long-Term Fundamentals," Analysts Say (Reiteration) While overlapping with the previous point, emphasizing this aspect highlights the market's underlying strength. The perspective that short-term price volatility, driven by leverage liquidations and geopolitical events like the tariff announcement, does not fundamentally shake the cryptocurrency market serves as reassurance for investors who believe in ETH's long-term value. ETH, supported by its fundamentals such as the expanding use cases of the Ethereum smart contract platform and the growth of the DeFi and NFT markets, may recover swiftly from short-term market turmoil and see its value re-recognized. * Zcash Recovers to Pre-Crash Highs After Market Plunge Zcash (ZEC), a privacy-focused Layer 1 coin, has fully recovered after Friday's market crash, reaching new recent highs on Saturday. Although Zcash fell 45% on Friday amidst market turmoil following President Trump's 100% tariff announcement on China, it subsequently rebounded rapidly. Zcash's swift recovery indicates market resilience, particularly for coins with strong fundamentals or significant demand in specific niche markets. ETH is also expected to show similar resilience, driven by ongoing development and innovation such as the advancement of Layer 2 solutions and Ethereum's network upgrades. * BNB Hits All-Time High, CEO Calls it "Most Undervalued Blue Chip" David Namdar, CEO of NASDAQ-listed CEA Industries, stated that BNB's surpassing its previous all-time high to exceed $1,300 signifies "network reliability, not an unexpected outcome or a rare peak." He referred to BNB as "the most undervalued blue chip in the market," arguing that its rally reflects fundamentals that have been overlooked for years finally coming to fruition. BNB's price surge could increase interest in other major blockchain ecosystems beyond Ethereum, including ETH. Particularly considering the growth of the BNB Chain and its competitive relationship with Ethereum, BNB's strong performance could act as a catalyst, boosting investment appetite for altcoins across the market. * Crypto Traders Blame "Single Event" Trump Tariffs: Santiment According to Santiment's analysis, retail traders are hastily blaming President Donald Trump's announcement of 100% tariffs on China for the overall market decline on Friday. However, analysts point out that tariffs were not the sole reason for the market downturn. This is described as typical "rationalization" behavior by retail traders in bear markets, attributing declines to a "single event." This analysis suggests that market volatility stems from a complex interplay of factors—including leverage, market psychology, and macroeconomic conditions—rather than just one news event. ETH's price, similarly, fluctuates due to these combined factors rather than a single cause, making this analysis important for understanding short-term price movements. * Finding Hidden Gems in Crypto Using ChatGPT ChatGPT can synthesize sentiment from social media and news, revealing early narratives and market attention surrounding emerging tokens. Furthermore, by feeding technical indicators and on-chain transaction data into ChatGPT, traders can track "smart money" movements and identify accumulation or distribution patterns. This news indicates that AI technology is increasingly being utilized for analyzing the crypto market and informing investment decisions. The ETH ecosystem, with its diverse applications in DeFi, NFTs, and the metaverse, could potentially leverage AI tools like ChatGPT to more easily discover new opportunities and undervalued projects within these sectors, possibly increasing investment opportunities in ETH. Overall Summary The previous day, the cryptocurrency market experienced a sharp short-term decline triggered by the geopolitical event of President Trump's tariff announcement on China. However, analysts view the impact on long-term fundamentals as limited, fostering expectations for market resilience. Bitcoin is re-testing technical patterns reminiscent of past bull runs, suggesting a potential positive ripple effect on the altcoin market, including ETH. Conversely, unlike the simplistic attribution by retail traders to a single event, analyses indicate that market fluctuations arise from a complex interplay of factors such as leverage, market sentiment, and macroeconomic conditions, necessitating continued cautious market analysis. The increasing utilization of AI technology is also noteworthy, potentially playing a significant role in future market analysis and investment decisions.

Short-term geopolitical risks and a resurgence of leverage could exert downward pressure. Key support is found at the recent low of $3,687, with $4,000 serving as a significant psychological level. Monitoring regulatory developments, macroeconomic indicators, and shifts in institutional investor sentiment is crucial.

In the short term (24-48 hours), the current momentum may continue. If the $4,138 level holds, further upside could be targeted. Over the medium term (1 week), approaching the $4,748 resistance level is a possibility, depending on Bitcoin's trajectory. Potential catalysts include advancements in the ETH ecosystem's development and macroeconomic stability.

Overall, yesterday's market plunge is assessed as a temporary correction, having no impact on ETH's long-term fundamentals. Bitcoin's bullish signals and the overall market's resilience are expected to positively influence ETH as well. Advancements in AI analysis tools are opening new avenues for discovering hidden market opportunities. The current market bias is 'slightly bullish'. Investors should maintain prudent risk management while acknowledging the market's underlying strength. For entry points, consider buying on dips towards the $3,687-$4,000 range, or entering upon confirmation of a breakout above $4,500. The primary take-profit target is set at $4,748; however, cautious traders are advised to scale out of positions gradually. A stop-loss level should be placed below $3,687, adjustable according to your risk tolerance. This week, monitor the $4,000 support and $4,748 resistance levels closely to identify strategic trading opportunities. Avoid excessive leverage and continuously monitor geopolitical and macroeconomic events. By remaining agile in response to market shifts, you can maximize opportunities to profit from the ongoing development of the ETH ecosystem and potential upward market trends.