Bitcoin (BTC) and altcoins experienced a major crash yesterday, with $1.7 billion worth of leveraged trades being liquidated. As the market faced its biggest wave of liquidations this year, Bitcoin fell to $112,000 and Ethereum to $4,200. While this decline has made investors nervous, one analyst said that $4,000 is critical for Ethereum (ETH). According to analysis by Adam, an analyst at crypto options analysis firm Greeks.live, a drop below $4,000 could trigger a broader decline in ETH. The analyst noted that Bitcoin has declined alongside Ethereum, but ETH's volatility has declined relatively less. Conversely, concerns about downside risk for ETH have increased in the options market, as the market has shifted significantly toward put options, with put premiums significantly exceeding call premiums. This suggests increased demand to hedge against further price declines. Options traders remain concerned about downside risks. A drop below key support levels is a highly negative signal. The psychological $4,000 level now requires close monitoring. If this level is breached, the options market could face bear market repricing. The analyst recently explained that the overall outlook for the crypto market in the fourth quarter remains optimistic, but many participants are currently focused on short-term risk management. “Market optimism about the fourth quarter remains. However, the current options market is primarily focused on short-term hedging.” *This is not investment advice. Continue Reading: Analysis Firm Announces Level to Be Maintained in Etheruem: Otherwise Further Decline May Come!
Pundit: This Is Why They Shit on XRP
