- The sentiment of investors towards Ethereum has improved in recent months.
- It is possible that Ethereum will be subject to selling pressure in the near future, according to key metrics like the MVRV Ratio and the long/short differential.
The past year saw a lot more volatility in Ethereum, particularly after the merger. However, according to Santiment’s recent data, the tides may soon turn in Ethereum’s favor as investor sentiment appears to be highly bullish at the moment.
Read Ethereum’s Price Prediction 2023-2024
The public sentiment
According to Santiment data, traders were more interested in Ethereum than other cryptocurrencies, such as BNB and BTC.
Interestingly, Ethereum’s sentiment remained positive in spite of the decline in social activity. LunarCrush data shows that Ethereum’s number of social mentions has declined over the past month.
To be more precise, social mentions of Ethereum declined by 33.7% and engagements dropped by 12.8%.
The bullish demand was reflected in the behavior of big-pocket and retail investors. Glassnode information shows that the number of addresses with more than 10 Ethereum has reached an all-time high at 352,360 addresses as of the writing of this article.
The number of addresses that are not zero on the Ethereum network has increased significantly over the past few months. This metric was at 92.36million as of press time.
The network was also supported by validators, who along with investors, are also supportive. According to data from Staking Rewards, Ethereum’s number of validators grew by 2.3% in the past 30 days. At press time there were 496.462 validators.
Increasing revenue is one reason for the increasing number of validators on our network. The revenue generated by these validators has increased by 14.24% over the past week. At press time, the total revenue generated by validators was $959.18M.
The “Trade” off
The derivative market for Ethereum was not perfect.
According to coinglass data, short positions against Ethereum have increased significantly in the past few days. 51.53% of all positions made against ETH were at the time of writing.
According to Santiment, the MVRV for Ethereum has increased in the past two weeks. This suggests that Ethereum holders would be able to make a profit from selling.
Many of these Ethereum owners who were profitable were short term holders. This was evident by the negative short/long difference in Ethereum.
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