Ethereum (ETH) Price Can Correct Further As Per Exchange Inflow and Social Sentiment Data

Published June 9, 2021 | Updated June 9, 2021

In Brief
  • The current drop in the ETH price has forced many investors to surrender their holdings.
  • However, there are some bullish indicators as well which can alleviate the pain and prevent a further correction from here.

Ethereum (ETH) Price Can Correct Further As Per Exchange Inflow and Social Sentiment Data

  • The current drop in the ETH price has forced many investors to surrender their holdings.
  • However, there are some bullish indicators as well which can alleviate the pain and prevent a further correction from here.

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.

Courtesy: Santiment

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.

Courtesy: Santiment

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.

Courtesy: Santiment

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.

Courtesy: Santiment

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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Bhushan Akolkar 537 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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