Ethereum (ETH) Price Can Correct Further As Per Exchange Inflow and Social Sentiment Data
Following the market-wide correction on Tuesday, June 8, the Ethereum (ETH) price came crashing down under $2500 and has been consolidating for a while. At press time, ETH is trading at a price of $2458 with a market cap of $282 billion.
Let’s take a look at some of the indicators that suggest the bearish or thew bullish momentum going ahead. There have been some on-chain indicators that suggest Ethereum capitulation going ahead. During this recent correction, the exchange inflows for ETH have shot up which shows signs of strong capitulation going ahead.
On the other hand, it shows that the weighted social sentiment for Ethereum (ETH) is currently very low. The social sentiment seems very bearish as of now, however, any further price correction could be limited as of now. If the weighted social sentiment remains negative for a very long time, we could possibly be seeing some strong capitulation going ahead.
Since hitting its all-time high in mid-May, the ETH address activity has been on a decline over the last few weeks. This lack of interaction is certainly another major bearish concern for the Ethereum (ETH) investors. Similarly, Ethereum’s NVT value aka token circulation has been on a decline since this month. “Our NVT model is showing its first bearish bar since April, 2020,” reports Santiment.
Some Bullish Indicator for ETH Investors
The ETH whales haven’t budged as of now as the price continues to oscillate around the mid-$2000 levels. Ethereum whale addresses holding between 1,000 and 100,000 ETH tokens continue to hold their purchases further with strong conviction.
The BitMEX contract funding rate for Ethereum went negative for the very first time in over a year. This is clearly a sign of crowd fear as of now, but Santiment thinks that it is ultimately a bullish sign because since the market is in fear, the crypto asset is fundamentally bullish.Source