After a strong bounce, Ethereum is once again catching the eye of investors. But is this rise truly sustainable ? While some technical indicators remain positive, on-chain activity appears to show signs of exhaustion. Full analysis here.
Ethereum seems to have recaptured public attention recently, as signs of renewed interest multiply across social channels and markets. However, the question remains whether this positive momentum can sustain itself over time. It may require an injection of fresh capital to materialize into a significant price increase.
Source: Santiment
Public interest in Ethereum has reached new heights, with its social dominance climbing to 8.96%. This marks its highest level since May. This trend is accompanied by an increase in reserves held on exchange platforms, raising questions about behind-the-scenes movements. Is this an anticipatory movement by the crowd or renewed interest from institutions ?
Despite mixed on-chain signals, ETH funding rates have remained slightly positive at +0.004%. This indicates that traders maintain a bullish position. This persistent confidence in derivatives could amplify gains if the positive momentum continues. However, in the event of a trend reversal, a rapid unwinding of leveraged positions could be expected.
Source: Santiment
Short-term investors are making their reappearance. This is evidenced by the increase in realized capitalization for holders of 1 to 7 days, which has risen to 2.35. This movement, occurring in a context of intensifying social buzz and increasing reserves held on exchange platforms, suggests growing confidence in Ethereum’s upside potential.
Ethereum derivatives data revealed a marked decrease of 58.9% in transaction volume and 1.05% in open interest. This analysis highlights a disengagement of active market participants. However, this decrease isn’t a sign of a massive exodus, but rather of more cautious participation from traders.
Source: Santiment
Optimism is gaining momentum through social signals, trader positions, and the return of short-term investors. However, Ethereum’s success will depend on the arrival of new capital into the market. Without these capital injections, enthusiasm alone risks not translating into a significant price increase. It will therefore be essential to closely monitor the evolution of the crypto market to anticipate upcoming price movements in the Ethereum ecosystem.
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