Crypto Market Anxiety Sparks Opportunity Amid Ethereum and Shiba Inu Moves

Oct. 9, 2023
BY Mishal
Crypto Market Anxiety Sparks Opportunity Amid Ethereum and Shiba Inu Moves

Recently, Santiment, a prominent cryptocurrency analytics platform, has shed light on a noteworthy development in the crypto market. According to their analysis, traders of Ethereum (ETH), Shiba Inu (SHIB), and Sushiswap (SUSHI) exhibited signs of mild panic on the previous day.

These panicky sentiments were accompanied by a surge in trader losses, which, compared to profits, reached some of the highest levels witnessed throughout the year. Analysts often interpret this combination of trader anxiety and substantial losses as a potential indicator of a short-term rebound opportunity in the crypto markets.

Analyzing Ethereum & Shiba Inu Performance

Crypto analyst Gert van Lagen¬†took to Twitter¬†to share insights on Ethereum‚Äôs current situation. According to his analysis of the one-month chart ($ETH [1M] ‚Äď EW), Ethereum encountered a strong impulse that was halted at the red 200-week Exponential Moving Average (EMA).

Following a sharp correction, a momentum impulse broke the 200-week EMA. The subsequent phase was identified as an Expanded Flat correction, finding support at the 200 EMA. Looking ahead, the analysis suggests a third blow-off impulse targeting a price range between $7800 and $14000. Additionally, there is anticipation of a breakout from a blue ascending triangle.

On a different note, a report by JPMorgan revealed that the increase in Ether staking after the Merge and Shanghai upgrades has cost Ethereum. The network has experienced higher centralization, and the overall staking yield has declined.

Shiba Inu has recently exhibited a remarkable 485% dominance on the buying side, as revealed by the Bid-Ask Volume Imbalance. This metric gauges the disparity between the volume of buy orders (bids) and sell orders (asks) in the order book. A 485% imbalance strongly suggests an overwhelming buying pressure compared to selling pressure.

Despite the significant imbalance favoring bulls, analysts caution against hasty investment decisions based solely on this metric. The Bid-Ask Volume Imbalance is recognized as a volatile indicator susceptible to rapid changes. Factors, including market sentiment and potential manipulation, could contribute to such high imbalances.

Consequently, investors should approach this data cautiously and consider other factors before making investment decisions. Imbalance signals Shiba Inu’s buying interest at the current price but isn’t a sure sign of imminent reversal.

Mishal

Editor
Experienced in the realm of cryptocurrencies and fueled by a deep passion for blockchain technology, I am a skilled crypto writer. My expertise lies in offering comprehensive insights into various aspects of the crypto space, encompassing cryptocurrencies, decentralized finance, and the cutting-edge developments shaping the world of digital assets.

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