$ETH

The price of Ethereum (ETH) — and crypto in general — often dips before a major pump due to a combination of psychological, technical, and market manipulation factors. Here's a breakdown:

1. Whale Manipulation

Big players (whales) sometimes sell off ETH to trigger fear (FUD) and force smaller investors to panic sell. Once the price drops, they buy back in at a discount — then the price pumps.

2. Stop-Loss Hunting

Dips can be caused by intentional moves to trigger stop-losses set by traders. This creates a quick drop in price, which then rebounds when those positions are cleared.

3. Market Sentiment Fluctuations

Before big news or updates (like Ethereum upgrades), some traders "sell the rumor, buy the news." Temporary dips happen as some take profits early, followed by a pump when hype or actual utility kicks in.

4. Liquidity Grabs

Dips help smart money accumulate ETH at lower prices by shaking out weak hands. It's a way to build up positions without pushing prices up during accumulation.

5. Technical Retests

Prices often dip to test key support levels before moving higher. This is part of natural price action — healthy markets don't just go straight up.

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