Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Data shows Ethereum sentiment on social media doesn’t lean too bullish right now, something that could pave the way for a continuation in the asset’s rally. Ethereum Positive/Negative Sentiment Still At Muted Levels
In a new post on X, analytics firm Santiment has talked about the sentiment around Ethereum that’s present among social media users. The indicator shared by Santiment is the “Positive/Negative Sentiment,” which tells us how the positive and negative comments related to ETH compare against each other on the major social media platforms. Related Reading XRP To $12? Analyst Reveals Bold Target From Multi-Year Pattern 21 hours ago
The metric separates between the two types of comments by putting users’ posts/threads/messages through a machine-learning model. Once they have been divided, it counts up the number of each and takes the ratio between them.
Below is the chart shared by the analytics firm that shows the trend in the Ethereum Positive/Negative Sentiment over the last few months: The value of the metric seems to have been relatively low in recent days | Source: Santiment on X
As displayed in the graph, the Ethereum Positive/Negative Sentiment interestingly witnessed a plunge as the asset’s breakout earlier in the month took place. This would suggest that social media users weren’t convinced by the rally. The continuation in the run since then has meant that the sentiment has improved a bit, but it still remains much lower than the high from last month. Thus, it seems retail is in disbelief, despite the fact that the cryptocurrency is nearing its all-time high (ATH).
If the past is anything to go by, this fact could actually be a positive signal for ETH. “Prices historically movein the opposite direction of retail traders’ expectations,” says Santiment. The analytics firm has highlighted in the chart some instances of this trend in action. It would appear that FOMO spikes led to price drops for the asset, while excessive FUD resulted in price rises.
“With key stakeholders accumulating loose coins that small ETH traders are willing to part with right now, prices are showing very little sentiment resistance from breaking through and making history in the near future,” explains Santiment. Related Reading Bitcoin Retraces Below $120,000: Is Coinbase Selling To Blame? 1 day ago
In some other news, the Ethereum Futures Open Interest has shot up alongside the price surge, as analytics firm Glassnode has pointed out in an X post. The trend in the ETH Open Interest over the past year | Source: Glassnode on X
The Futures Open Interest measures, as its name suggests, the total amount of futures-related positions that are currently open on all centralized derivatives exchanges. From the chart, it’s visible that the metric has climbed beyond the $35.5 billion mark, which is a new record. ETH Price
Following a rally of over 7% in the last 24 hours, Ethereum has reached the $4,730 mark, now sitting within touching distance of the ATH. The price of the asset seems to be closing in on the ATH | Source: ETHUSDT on TradingView Featured image from Dall-E, Glassnode.com, Santiment.net, chart from TradnigView.com