Macro factors contributed to the bearishness in crypto markets, with runaway inflation continuing and the Federal Reserve raising interest rates to control soaring prices. But could sufferers see the light at the end of the tunnel for Ethereum? [ETH] and bitcoin [BTC].
Here is AMBCrypto’s price prediction for Ethereum [ETH] for 2022-23
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clouds of worry
For the first half of October 21st crypto The markets looked bleak Bitcoin and ETH were on the verge of breaking below key weekly support levels. Some altcoins saw some green pastures, but not the top two cryptos. ETH and BTC planned to take a different path than altcoins.
Both Bitcoin and Ethereum saw large transactions taking place while traders were incurring a HUGE loss. According to Santiment saw Bitcoin its lowest ratio of losing to winning trades in 4.5 months and ether recorded historic lows.
Source: Santiment
Looking at the chart, the analytics platform added:
“Signs of surrender have emerged on Friday, including transactions from addresses trading their assets at a loss.”
Here, traders opened massive short positions as evidenced by funding rates. Santiment noted that liquidations are usually common, and such scenarios can result in surprise price jumps. This meant the market could be in a state of recovery.
lessons from the past
Both Bitcoin and Ethereum recently had a 1v1 confrontation with said narrative. Consider Ethereum since the merger, the number of trades on the Ethereum network has been plagued by a decline. Removing these “weak hands” could actually help the network given the surrender phase.
Bitcoin also rode on the same train. Monitoring resource Whalemap has reported a transaction involving 32,000 BTC. Whalemap was quick to argue with an alternative perspective to the classic bear market narrative – big investors capitulating to the lows.
Overall, could this point to a possible recovery in the bearish market space? Here is definitely a possibility. In fact, at the time of writing, both BTC and ETH saw a small portion of CoinMarketCap’s price surge. BUT again, one must consider the possibility of further corrections.
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