Ethereum price prediction updates: The cryptocurrency continues to struggle with the negative sentiment after the FTX collapse. While the entire crypto market fell victim to the entire Sam Bankman Fried episode, Ethereum faced another blow as the FTX hacker sold large ETH holdings. Meanwhile, it appears that the market is poised for an Ethereum short squeeze due to the movements in the futures markets. On-chain data suggests that there could be another price drop for ETH soon.
Also Read: Popular Analyst Predicts Bitcoin (BTC) Price Risk Drops to $10,000
Rising stock market inflows
Amid the negative sentiment prevailing in the market, short positions on Ethereum (ETH) have dominated for the past few days. According to CryptoQuant, ETH exchange inflow has been increasing lately with deposits exceeding 100,000 ETH per hour. This could lead to a short squeeze for the two leading cryptocurrencies in the short term. This is happening amid the low cryptocurrencies after the FTX collapse.
“The amount of ETH deposited into exchanges has surged to over 100,000 ETH per hour over the past few days. The dominance of the short positions could lead to a short squeeze event soon.”
The Ethereum exchange inflow metric lately shows that the number of transactions on exchanges increased when there was a price drop. As of this writing, Ethereum (ETH) is priced at $1,221, up 2.58% over the past 24 hours, according to price tracking platform CoinMarketCap. In early November, ETH fell near the yearly low of $1,100.
Also Read: Terra Classic (LUNC) Price To Post Massive Rally, Here’s Why
Ethereum whale movements
Meanwhile, Ethereum’s recent price drop led cryptowhales to seize the opportunity to add ETH holdings. Recently, on-chain data showed that the whales moved nearly 400,000 Ethereum from exchanges. The accumulation came as the FTX hacking news led to another drop in ETH price.
Also Read: Bitcoin Price Dump Imminent? 10,000 BTC moved in connection with Mt. Gox hack
Anvesh reports on key developments surrounding crypto adoption and trading opportunities. Associated with the industry since 2016, he is now a strong advocate for decentralized technologies. Anvesh currently resides in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him at [email protected]
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
Comments are closed.