- ETH’s social dominance has risen to its highest level since February.
- The coin’s daily price movements show that no price correction may be necessary.
Ethereums [ETH] According to Santiment data, social dominance has risen to its highest level in seven months.
🗣️ #Ethereum has dropped to $1,570, & #crypto‘s No. 2 market cap has become an increasingly polarizing topic. Currently, at the lowest rate level of 2023, traders are getting impatient. Rising #bearish The sentiment is a good sign of an impending turnaround. https://t.co/WwmO7hXga7 pic.twitter.com/7JJaiiSZSo
— Santiment (@santimentfeed) October 9, 2023
Read Ethereum’s [ETH] Price forecast 2023-24
At the time of writing, information from the data provider estimated the coin’s social dominance at 10.53%. This represented 10% of all crypto asset discussions recorded so far this month and the coin’s highest social dominance since February.
Why the chit chat?
In the last 24 hours, the price of ETH has fallen from $1,630 to $1,587 at the time of writing. The last time the leading altcoin traded below $1600 was on September 27.
According to Santiment, as the coin’s value seeks newer lows, “traders are becoming impatient,” increasing bearish sentiments.
In general, an increase in a coin’s social activity during a period characterized by rising bearish sentiments often leads to a price correction. As noted by Santiment,
“The rising bearish sentiment is a good sign of an impending reversal.”
However, a look at the coin’s price movements on a daily chart suggested that ETH may not be ready for a significant recovery in the near term.
First, Ether accumulation among daily traders has been trending downward since the beginning of the month. The major momentum indicators have since shifted from positions above their respective centerlines to values below 50 as of the current moment.
For example, ETH’s Relative Strength Index (RSI) and Money Flow Index (MFI) were heading south at 42.46 and 40.16 respectively at the time of writing.
To lend credence to the above position, the coin’s on-balance volume (OBV) is down 1% since the beginning of the month. A decrease in an asset’s OBV indicates that there is more sales volume than buying volume. It often indicates that bearish sentiment is increasing and the price of the coin is likely to fall further.
How much are 1,10,100 ETHs worth today?
Additionally, ETH’s Chaikin Money Flow (CMF) was negative -0.11 at the time of writing. A CMF value below zero is a sign of weakness in the market as it highlights the level of liquidity flowing from the currency.
Source: ETH/USDT on trading view
Dates of Mint glass showed that the bearish sentiments extend to the coin’s futures market as Open Interest has trended lower since the beginning of the month. At $5.12 billion at the time of writing, ETH Open Interest is down almost 2% over the past ten days.
Source: Coinglass
