The fundamental and technical trends suggest Ethereum price may soon revert higher
Ethereum price has slipped lower over recent weeks as other markets have also slumped. Simultaneously, activity on the blockchain itself has slowed as yield farming opportunities have dried up, with many reaching a point where they became grossly unsustainable. This may not be the end of the world, though, as fundamental and technical trends suggest, ETH may soon revert higher.
📉 The social volume of #Ethereum is nearing 6-month low levels across social discourse platforms as traders look elsewhere for volatility to trade. However, assets like $ETH typically see the biggest buy opportunities when crowds are disinterested. 😮 https://t.co/WwiqlcNihX pic.twitter.com/o11qcRntP7
— Santiment (@santimentfeed) October 4, 2020
Social volume plunges as Ethereum price slips lower
Due to a slowdown in ETH’s price action and the cryptocurrency usage, the volume of Ethereum-related social media posts has slumped. According to Santiment reports, as of October 3rd, Ethereum social volume is nearing six-month lows. While this may logically lead some to believe that this means that ETH is primed to move lower, Santiment notes that it may indicate that ETH is about to enter a pivotal accumulation phase.
This accumulation phase could precede a move higher as the extremely low social activity about the cryptocurrency may suggest capitulation amongst investors and an imminent reversal on inflows’ return.
The report stated:
“The social volume of #Ethereum is nearing 6-month low levels across social discourse platforms as traders look elsewhere for volatility to trade. However, assets like $ETH typically see the biggest buy opportunities when crowds are disinterested.”
A confluence of technical and fundamental trends indicates that ETH will continue its growth path soon.
Crypto trader Crypto Cactus referencing the chart below recently said:
“Personally, with so much uncertainty in the market, it is possible we see a $300 region retest, that said honestly, HTF structure is looking great, lots of EMA support below us… In 2018/2019, the 55 EMA was consistently resistance, price now trending well above!”
Other market participants have echoed this optimism. A trader called Logan Han, who regularly posts extremely profitable trades on Binance, made similar observations to the chartist. He also noted that Ethereum holding the low-$300s and high-$200s in the recent correction is pivotal for the bull case.
Han added that Ethereum is forming a falling wedge formation in the near term. Such patterns often precede upward breakouts. Ethereum seems to be in a fundamentally and technically positive long-term position though a move lower in the Bitcoin price could result in an ETH correction.
You can see the ETH price here.
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