Ethereum Faces October Reversal Risk After Record Q3 Rally

Ethereum (ETH) entered October facing a FUD vs. FOMO battle, which could determine its outlook for the month.

The asset's Q3 rally pushed ETH into the spotlight with a 70%+ return on investment, making it the best Q3 performance in history. This has led to a bullish sentiment, with FOMO likely sustaining HODLing and buying.

However, Santiment data shows a diverging trend, with Ethereum's sentiment meter reading at 0.89 bullish comments per one bearish across social media platforms. This is the lowest ratio since June 7th, indicating that bearish talk may be prevailing.

Pessimism could create a contrarian setup for ETH, as analysts point out that traders becoming fixated on prices going down may have already sold their panic shares. The key question is whether on-chain data supports this bullish outlook or if the bears are getting ahead of themselves.