Let's talk about ethereum again. Because ethereum is having just that much controversy as usual. Will begin from the crash about 10 days ago liquidation Cascade of 10th of October where BTC lost $20,000 inside one candlestick, ethereum had their fair share of losses as well. Obviously ethereum is only valued at $4,000 so we didn't lose that much money compared to BC. But when you compare it in proportion, BTC lost only 10%. and ethereum lost 20%. so it is evident that ethereum had it far worse than BTC and maybe most other cryptos. Ethereum actually went down to $3,600 from about $4,400. So that is a lot of money wiped off. Now let's speculate whether ethereum will crash again because the industry sure makes it look like so.
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Well, if we try to figure out the main reason of why ethereum won't last more than BTC that day, there can be a simple reason that is in the derivatives market. The leveraged trades for ethereum were twice in amount than that of BTC. A lot of people who are holding long positions which got decimated in the liquidation. Now there was expectation that the Bull run was active because after this liquidation institutional investors bought a lot of ethereum and other cryptocurrencies in a move which is known in the market as buy the dip. Due to this, ethereum was rebounding at a slow but steady pace. No, I might have said that we will discuss whether ethereum will crash or not and the short answer is no. The future is actually bright for ethereum. We all know that ethereum's spot ETFs were approved and since then people have been investing using those ETFs. And data shows that there have been a lot of inflows into those ETFs so people are buying. And if people are buying then ethereum is not going anywhere. They'll only go up that along with the staking adventure which is done by institutional investors who stake ethereum which they hold, and then they pay our dividends from the dividends they get from staking the Ethereum. So they pass on the dividends and they don't have to pay anything out of pocket.
These strategies have become quite famous among investors and along with the worldwide acceptance of ethereum as a secure system, it holds confidence. So my final verdict is no ethereum will not crash rather it will rebound and maybe it'll go a lot further.
