Ethereum Price Prediction: On Chain Metrics Point Hint A Price Fall Due To Short Squeeze Soon
The cryptocurrency sector is still in a state of shock after the FTX collapse. While the entire crypto sector was traumatized by the Sam Bankman -Fried shenanigans, Ethereum has been twice unlucky with an FTX hacker selling massive ETH holdings. After the recent crash, investors are counting their losses and are not sure if there will not be another slide shortly.
Interestingly, market indicators for Ethereum Price Prediction show that ETH could soon be staring at another short squeeze. The above predictions are based on future market dynamics, and on-chain data suggests that there could be another price fall in the offing for Ethereum.
Ethereum Price Prediction -Rising Exchange Inflows
Aggravating the already dark sentiments is the fact that short positions have dominated the market for Ethereum in the past few days. As per a prominent crypto analyst, there has been a surge in the exchange inflow of ETH in recent times, with deposits of over 100,000 ETH per hour. This could mean that there is a possibility of a short squeeze for the top two cryptocurrencies shortly. This comes against a backdrop of low cryptocurrencies following the FTX collapse.
“The amount of ETH deposited into exchanges has spiked in the last few days to more than 100,000 ETH per hour. The dominance of the short positions might result in a short-squeeze event soon.”
The history of the exchange inflow metric of the number two crypto asset reveals a price drop, and the number of transactions into exchanges increased. When reports last came in, ETH was changing hands at $1,209.44, up by 1.52% in the last 24 hrs. It showed a Low of $1,186.79 and a High of $1,227.04 in the previous 24h. The number two crypto asset had a market cap of $148,052,204,382 and a circulating volume of $5,257,640,271 in the past 24 hours, according to price tracking platform CoinMarketCap.