Ethereum Breaks Below $4,000—Is This The Start Or The Shakeout?
Experts are divided on Ethereum's trajectory after it dropped below $4,000, with some citing bearish data while others point to bullish on-chain activity.Summary
Ethereum's price drop below $4,000 has sparked a debate among experts regarding its future direction. Analysts at 10x Research recommend shorting ETH, arguing that its previous institutional 'digital treasury' narrative has fractured, evidenced by significant outflows from spot ETH ETFs, including large sales by BlackRock. Furthermore, a bearish technical crossover pattern suggests a potential sharp decline, mirroring a past event where ETH fell from $3,800 to $1,400.
Conversely, bullish indicators suggest a potential rebound in November. Santiment noted that increased short positions as the price fell to $3,700 often precedes a price rally, as negative funding rates signal an oversold condition ripe for a bounce. Additionally, the Ethereum 'Ecosystem Daily Activity Index' reached a record high, indicating strong, genuine user engagement that could provide fundamental support for future appreciation.
Ultimately, Ethereum's immediate path remains uncertain, balancing negative institutional and technical signals against positive on-chain fundamentals and derivatives positioning.
(Source：BeInCrypto)