Amid the broader market crash, the world’s second-largest cryptocurrency Ethereum (ETH) has entered a major correction. After last week’s fall, the ETH price has been hovering around $2,000 levels.
On-chain data provider Santiment provides us some glimpses into what could be the next price action for Ethereum (ETH). The data provider noted that on an 8-hour chart, there have been heavy shorts building up for Ethereum at $2,000.
However, Santiment adds that this usually doesn’t end well with the shorter and a short squeeze is likely to follow. Thus, we might see a bounce back in the price of Ethereum.
But another concerning factor is the ETH exchange supply. Santiment notes:
While we saw a nice drop in supply on exchanges for the past year or so, May 1st 2022 saw a huge increase in supply on exchanges as folks rushed to exit their positions, which is clearly reflected on the price itself.