Social Interest in Ethereum Is Waning, but Is This a Bullish Sign?
Talking Points:
- Bitcoin (BTC) has been causing the whole crypto market to see some vulnerability, which has had a major impact on Ethereum (ETH) and numerous other altcoins.
- ETH is currently consolidating close to the benchmark crypto as it trades around the 350 USD territory.
- Where it moves next will probably rely on whether BTC breaks out, or breaks down, from its region between 10,600 and 10,800 USD.
- One data platform is suggesting that the trends are showing ETH’s social volume is declining rapidly right now.
- This implies a lack of interest in the cryptocurrency, which could end up being a highly bullish trend for the asset.
ETH’s price activity has been causing uncertainty for its investors. While it is trading considerably over its recent lows of around 315 USD, it is still holding beneath its vital resistance zone that exists between 380 and 400 USD.
These levels represent the lower and upper limits of the zone that it has found itself inside throughout the last couple of days and weeks. Until one of these levels is soundly breached, it mat stay trendless.
Due to the very close correlation to BTC that has formed, where it moves next might rely completely on BTC.
Data appears to suggest that a push higher might be imminent in the short-term, as the social volume for ETH has started to slide.
Ethereum Remains Around the Mid 350 USD Territory As Momentum Declines.
Ever since its fall from the highs of 490 USD, ETH has really lacked a trend as it bounces between the upper and lower, 300 USD territory.
At the time of publishing, the cryptocurrency was trading down slightly at its present price of 362 USD. This is in the region where it has been trading over the last couple of days.
Where it moves in the short-term will probably rely mainly on BTC, which is also experiencing some range-bound trading.
Bullish for Ethereum As Social Volume Begins to Wane.
As indicated by the data from analytics platform Santiment, ETH’s social volume has been on the decrease ever since its price hit highs in August.
The strength of this decrease is in fact a bullish sign for the crypto, as it acts as a counter indicator.
“ETH’s social volume has tailed off since its 2020 peak in mid-August and a subsequent smaller spike at the beginning of September. Typically, the falling crowd interest is a positive sign for an asset to rebound back to previous highs, given enough time.”
Although BTC will without doubt influence ETH, this key strength indicates that an upswing could be fast approaching.
