Santiment warns excessive ETH dip-buying sentiment could precede further drop

On-chain analytics platform Santiment suggests that excessive buy-the-dip sentiment surrounding ETH could signal further short-term price declines, even as its price fell below $2,000 for the first time since March. Santiment noted that while sharp price drops typically induce fear, uncertainty, and doubt (FUD) among investors, the current mood is characterized by a growing expectation of a buying opportunity. The platform warned that when investor sentiment is overly optimistic, prices tend to fall further. A better buying opportunity may arise when genuine fear emerges in the market, Santiment added.