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Ethereum (ETH) Now Showing This Foremost Capitulation Sign: Details

Fri, 10/21/2022 - 15:28
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Tomiwabold Olajide
Ethereum (ETH) currently displays this key sign of capitulation
Ethereum (ETH) Now Showing This Foremost Capitulation Sign: Details
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According to on-chain analytics firm Santiment, several capitulation signs are now emerging following the last market declines on Friday, among which are transactions from addresses trading out their assets while at a loss. Bitcoin is seeing its lowest ratio of loss v. profit transactions in over four months.

In this regard, the second largest cryptocurrency, Ethereum, is sweeping historical lows, which remains a major capitulation sign. As reported by U.Today, traders opened up massive short positions, as evidenced by the funding rates. Santiment notes that liquidations tend to be common, and surprise bounces could occur in such scenarios.

A short squeeze often occurs in higher-than-usual bearish conditions, which have been on the scene lately. Ethereum's active addresses have sunk to four-month lows, with weak hands continuing to drop post-Merge. Likewise, disinterest in the crypto asset has been high as prices reach a stalemate.

Arcane research also points to a potential bottom formation for Bitcoin, saying, "Now, most on-chain market indicators signal that the bottom is already in." Ethereum traded down 1.93% at $1,279 at press time.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.