Fears that the price of Ethereum (ETH) could fall below the $1,600 support for the first time in six months have been sparked by recent price action. On-chain analysis looks at important data trends, which show that bullish traders could take advantage of the market FUD’s growing.
Subsequent to breaking over the $2,000 mark in mid-July, Ethereum’s (ETH) cost has placed its second successive month in decline. Regardless of Grayscale’s new Spot ETF bid triumph, the overarching opinion in the crypto markets has been overwhelmingly negative. Strategic crypto traders who take advantage of the extreme market Fear, Uncertainty, and Doubt (FUD) are the focus of on-chain analysis.
The majority of cryptocurrency investors are now expressing bearish sentiment after nearly two months of decline. In September, bearish perspectives have dominated the crypto market discourse, as stated by Santiment, a crypto data analytics company.
However, it’s interesting to note that historical patterns suggest that this is a clear indication that the market is nearing a turning point.
On every trading day since August 31, the Social Volume chart below demonstrates that “Bear Market” mentions have outpaced “Bull Market.”
The number of times a crypto topic is mentioned across relevant social media channels is known as social volume. In this context, investors’ pessimism is demonstrated by the prolonged dominance of the term “Bear Market” in social media conversation.
Authentic patterns show that this peculiarity happened around Walk 8, when the USDC de-stake and Silicon Valley Bank disappointment set off outrageous market FUD. Between March 11 and April 17, the price of Ethereum went from $1,430 to $2,120, a 48% increase.
The new outrageous degree of negative feelings is a fundamental marker that this peculiarity could raise its head again before long.
Hopeful merchants have proactively submitted purchase requests behind the faculties with at least some expectations of a forward movement swing.
Bullish traders have placed active orders to purchase 643,000 ETH for approximately $584 million, according to aggregate order books from 21 cryptocurrency exchanges. This is almost 50% more than the current sell orders, which are for 431,000 ETH.