According to Sentiment Platform Santiment, the surge in social media mentions could be expected to cool down as it is mentioned as being “towards the level of “extreme euphoria””.
However, other metrics suggest that there is still room for Ether’s (ETH) rally, earning over 50% over the last 30 days.
“Extreme Euphoria” can put the price of ether at risk
“Social indicators are flashing warning signs. Ethereum to Bitcoin price ratio has skyrocketed at an incredible 70% since early May,” Santimento said in a report Friday.
“This has created a massive spike of extreme happiness and social domination, often a red flag,” Santimento added.
Sentiment providers explained that if the social domination of cryptocurrency spikes to “an extraordinarily high level,” assets could be overvalued. “It suggests that assets are being promoted in excess and trade is congested, increasing the risk of price adjustments,” the sentiment platform explained.
According to Nansen, Ether is up 51.84% at $3,750 at the time of publication. However, Santimento said it may also be that the rally hasn’t finished because of the ether yet, as other indicators suggest that the market has not reached a “peak bubble.”
Ether has increased by 51.84% over the past 30 days. sauce: Nansen
“Memocoin’s social domination is currently very low,” Santimento notes that past market leaders usually suggest this is the opposite.
“The top of the true market as a whole is often characterized by broad and irrational speculations, and its absence could suggest that this rally is not over,” Santimento said.
Ether Ministry of Finance adoption could send prices to new highs
Meanwhile, with continued large-scale purchases from major companies Sharplink Gaming and Bitmine Immersion Technologies increasing signs of corporate Treasury profits for Ether, Maksim Balashevich said the new “Michael Saylor for Ether” story could be a catalyst to push assets to new highs.
Ether mentions in crypto-related debates have skyrocketed in parallel with a price rise of 50% over the past 30 days. Source: Tie
“There’s not much ETH supply, so I think ETH will likely have an opportunity to surpass Bitcoin in the next three to six months,” Galaxy Digital CEO Michael Novogratz said on Thursday.
Related: Eth Bulls goal $9k: Does your data support a noble price target?
Santiment issued a similar warning against Bitcoin (BTC) on Sunday.
Santiment said last week almost half of all crypto-related mentions on social media had hit the top of the locals and achieved a level of dominance that marked a potential short-term pullback as Bitcoin collided with a new high.
“Bitcoin’s market value exceeded 123.1k for the first time in its 17-year history, and there was a similarly historic rise in social domination,” said Santimento Analyst Brian Kinlivan.
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