Bitcoin and altcoins had a rough start to November. Bitcoin fell below $100,000, while Ethereum (ETH) suffered its biggest single-day loss.
While expectations were growing that Ethereum would fall below $3,000, the recent price recovery suddenly changed ETH expectations.
Analytics platform Santiment said that Ethereum investors are showing optimistic attitude towards ETH following the recent price recovery.
Accordingly, Ethereum investors have shifted sharply from extremely bearish to extremely bullish in just a few days.
Stating that FOMO has returned to Ethereum, Santiment said that this situation could prevent the rise from accelerating further.
According to Santimet, prices tend to move in the opposite direction of the crowd’s expectations, suggesting that ETH’s downward trend will continue for a while longer, despite investors suddenly turning bullish.
Ethereum investors quickly shifted from extreme pessimism to optimism. However, prices historically move in the opposite direction of popular expectations.
This means market optimism could lead to a short-term correction in ETH.”
Arguing that the sudden change in sentiment in ETH is not a real bullish and buying signal, Santiment stated that the real buying signal will come when investors abandon their expectations of a rapid recovery and the expectation of a re-entry to $4,000 decreases.
“Follow the ETH chart and wait for investors to temper their expectations of a quick return to $4,000. Once the bullish sentiment calms down again, that will be a real buy signal.”
*This is not investment advice.
