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 strong gains.
At this point, the largest altcoin, Ethereum (ETH), also fell after Fed Chairman Jerome Powell’s hawkish comments, dropping to $3,700.
Investor panic selling and short positions contributed to this decline, with ETH having difficulty sustaining the psychological level of $4,000.
While there is speculation as to whether Ethereum’s decline will continue, crypto analytics platform Santiment noted that rising expectations for a downtrend could signal a possible price recovery.
Santiment said in his latest analysis that the supply of Ethereum on exchanges has reached unusually low levels.
Additionally, Santiment said that ETH has accumulated a large amount of short positions, which creates favorable conditions for a potential increase in ETH price, similar to previous market cycles.
At this point, Santiment suggested that rising expectations for Ethereum’s bearish trend could signal a possible price recovery.
“Ethereum has fallen to $3,700 and investors are showing signs of panic.
Based on the past two months of data, exchange funding rates will determine where the ETH price goes.
At this point, if the ETH market is dominated by large long positions (greedy), the price will tend to undergo a correction.
Conversely, if ETH is occupied by large short positions, the price is likely to skyrocket.
*This is not investment advice.
