Ethereum Price Prediction: On Chain Metrics Point To Short Squeeze Soon

Ethereum Price Prediction Updates: The cryptocurrency continues to struggle with negative sentiment after the FTX collapse. While the entire crypto market fell prey to the entire Sam Bankman-Fried episode, Ethereum faced another blow with the FTX hacker selling large ETH holdings. Meanwhile, it appears that the market is up for an Ethereum short squeeze. On chain data suggests that there could soon be another price fall for ETH.

Also Read: Popular Analyst Predicts Bitcoin (BTC) Price Risks Fall To $10,000

Rising Exchange Inflows

Amid the negative sentiment prevailing in the market, there is a dominance of the short positions for Ethereum (ETH) in last few days. According to CryptoQuant, exchange inflow of ETH rose in the recent times with deposits of over 100,000 ETH per hour. This could the likelihood of a short squeeze for the top two cryptocurrency in the near term. This comes amid the 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.”

Ethereum’s exchange inflow metric in recent times shows that whenever there was a price drop, the number of transactions into exchanges increased. As of writing, Ethereum (ETH) price stands at $1,221, up 2.58% in the last 24 hours, according to price tracking platform CoinMarketCap. Earlier in November, ETH fell close to the range of yearly low of $1,100.

Also Read: Terra Classic (LUNC) Price To Record Massive Rally, Here’s Why

Source