en.bitcoinsistemi.com
Bitcoin ($BTC) and altcoins experienced a major crash in October, contrary to bullish expectations. After fluctuating throughout the month, $BTC and altcoins failed to achieve a strong rally.
At this point, the largest altcoin, Ethereum ($ETH), also fell to $3,700 in a decline triggered by the hawkish statements of FED chairman Jerome Powell.
While investors' panic selling and short positions were influential in this decline, $ETH is having difficulty holding the psychological level of $4,000.
While there is speculation about whether Ethereum will continue to decline, cryptocurrency analysis platform Santiment noted that the growing expectation of a downward trend could signal a potential price recovery.
In its latest analysis, Santiment said that Ethereum's supply on exchanges has reached unusually low levels.
In addition, Santiment stated that a large amount of short positions have accumulated in $ETH, and that these create favorable conditions for a potential upward movement for the $ETH price, similar to previous market cycles.
At this point, Santiment suggested that the growing expectation of a bearish trend in Ethereum could signal a potential price recovery.
“Ethereum has fallen to $3,700 and investors are showing signs of panic.
According to data from the last 2 months, funding rates on exchanges determine where the $ETH price will go.
At this point, when the $ETH market is dominated by large long positions (greed), the price tends to experience a correction.
Conversely, when $ETH is dominated by large short positions, the probability of a price jump is high.
*This is not investment advice.