Your favorite crypto news blog

Ethereum Investors Appear to FOMO as Speculation Mounts Around ETH 2.0

Altcoins 2020/05/26 20:00 by Ali Martinez
The upcoming launch of Ethereum 2.0 has investors and market participants alike speculating whether Ether is preparing for a moonshot. After the most recent correction that saw prices plummet to $191, many have claimed that the smart contracts giant hit market bottom. Santiment, a behavior analytics platform, noticed that some Reddit users are becoming overwhelmingly bullish, and FOMO seems to be building up. The firm was able to collect some of the most popular comments on the social network, which include: “Y’all got anymore of that $200 ETH? My funds just cleared and I wanted to buy right at the line.” Bullish Comments About Ethereum Emerge in Reddit. (Source: Twitter) With all the buzz around Ethereum, a contrarian could argue that instead of a bullish impulse, a downswing could be on the works. But is it possible? A Correction Ahead of Ethereum Ethereum is currently being held by a significant support level that sits around $200. However, its on-chain volume appears to have leveled off for over the past couple of weeks, based on data from Santiment. Ever since the peak of $227 on April 30, the on-chain volume of the smart contracts giant has been steadily declining while its pricer appears to have entered a consolidation phase. This significant divergence between price and volume may suggest that Ether could be bound for a steep correction. Ethereum On-Chain Volume. (Source: Santiment) The changes in the number of followers on Ethereum’s official Twitter account adds credence to the bearish outlook. For over the past year, this gauge appears to be highly correlated with the price action of this altcoin. Each time Ether’s Twitter followers’ count goes down, its price tends to follow. Ethereum Twitter Changes. (Source: Santiment) Now that this fundamental metric seems to have made a lower high on May 14, the odds for a bearish impulse increased substantially. Key Support Levels to Watch Out Out of all Ethereum addresses, more than 52% are currently “In the Money,” while over 45% are “Out of the Money,” according to IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model. These figures may indicate that as it was seen in Reddit, ETH holders are quite confident about what the future holds. Considering the bearish signs presented by the aforementioned on-chain indexes, the IOMAP could help identify areas of support in the event of a correction. A simple glance at this indicator shows that the most significant supply barrier sits between $171 and $177.5. Here, over 1.75 million addresses bought nearly 3 million ETH, which could serve as strong support. In/Out of the Money Around Price. (Source: IntoTheBlock) On the flip side, there is a significant resistance barrier between $202 and $226 that could prevent Ether from reaching its upside potential. Only time will tell whether support or resistance will break first to provide a better idea about where Ethereum is headed next. Featured Image from Shutterstock

0 Like(s)

You should also read...

Altcoins 16/11/19 23:30 by Cole Petersen
Ethereum Touches Freshly Formed Resistance Level as Analysts Eye Further Downside
Ethereum’s price action has been closely mirroring that of Bitcoin’s in recent times, which has made it prone to seeing heightened levels of selling pressure in spite of ETH’s multiple recen...
Read More
Altcoins 19/11/19 18:00 by Christine Vasileva
Ethereum USDT On-Chain Volume Breaks $100 Billion
Tether (USDT) keeps building up momentum on the Ethereum network, potentially creating new flows to and from exchanges. While the supply of USDT remains without change, the velocity of coins increases...
Read More
Altcoins 30/04/20 06:48 by Aayush Jindal
Ethereum Rally Seems Unstoppable: Here’s Why It Could Test $250
Ethereum is up more than 12% and it broke the $220 resistance against the US Dollar. ETH price is likely to continue higher and it could even test the $240 and $250 levels. Ethereum is surging and it...
Read More
Bitcoin 19/05/20 17:18 by Ali Martinez
These Key On-Chain Metrics Indicate Bitcoin Nears a Steep Downtrend
Bitcoin has been going wild over the past few hours. Its price surged rapidly towards $9,900, but an internal issue on BitMEX caused this platform to go down affecting the flagship cryptocurrency. Fol...
Read More
Altcoins 15/07/20 15:27 by Ali Martinez
Ethereum Poised to Resume Uptrend As Crucial On-Chain Metrics Turn Bullish
Ethereum entered a consolidation period over the past week that has led to the formation of a descending triangle on its 4-hour chart. A horizontal trendline developed along with the swing lows while ...
Read More