With Ethereum conquering its three-month peak, recent analysis highlights changes in social emotions and short-term price outlook.
Ethereum, the second largest cryptocurrency by market capitalization, has recently surprised the bears with its recovery. Over the last 24 hours and 7 days, 6% and 42% have skyrocketed, outperforming most high-caliber assets in these time frames.
Interestingly, the rally is an inverse play that takes into account the recent common bearish sentiment around the Ethereum ecosystem. Meanwhile, analysis From the intelligence platform, Santiment is something that looks like an emotion, highlighting the possibility of price action.
Noise around Ethereum adjustment
Ethereum’s poor start to this year has largely made market sentiment weaker. For perspective, the assets dumped 58% from the opening of $3,330 to $1,383 in April, delivering overwhelming performance compared to their colleagues.
It’s a sideways trend, and calls for weaknesses Ethereum Quite a spike. Santimento shared that between May 6th and 7th, the FUD around the coins spiked to the highest level this year. This is because the ether was not responding to a wider market recovery, as market watchers expected.
However, Altcoin King spiked 21% on May 8 to get back $2,000, surpassing the level at a 6% rally the following day. In particular, this event change quickly changed retailers from bearish feelings to overlooked fears (FOMO).
Social sentiment of Ethereum
Additionally, another indicator confirmed a growing interest in Ethereum. data Google’s trends show a recent spike in searches for “ether” and suggest that retailers are slowly realising their assets updated and bullish.
Meanwhile, this rapid emotional shift reflects the irrationality of the crypto space, as retail investors appear to focus on the short-term price action of assets rather than the underlying long-term outlook.
What’s next for Ethereum?
With the rise of hype, Santimento pointed out that historical data shows that overhype around Ethereum has followed historically sharp corrections. Nevertheless, he emphasized that attention around the coin has not yet reached such a level, but that he warns of close surveillance.
Additionally, increased Ethereum prices will increase traction and network activity. Santiment highlighted that the expansion of the utility could cause a surge in ether trading fees.
It currently averages at $1.57, and its trading fees are well below the $7 seen six months ago. Meanwhile, the analysis suggested that a spike above $2 could potentially spell the end of this recent momentum.
Additionally, Ethereum’s average 30D return is +32.5%, far surpassing the “rule of thumb: +15% danger zone”, which is recommended for Altcoins. This does not suggest price reclining, but it means that the price pace of the ether could decrease or cease in the next 30 days.
Nevertheless, Santiment claims that Ethereum’s long-term trajectory looks solid, with prices being Getting back $3,000 By June. However, we tied the price mark to $110,000 to the Bitcoin rally.
At the time of writing, Ethereum is trading for $2,599.