Ethereum (ETH) is extremely popular on social media. In fact, so popular that analysts warn: this cannot keep going well. According to the well-known data analysis platform Santiment, there is “extreme euphoria” around Ethereum. And that is usually not a good sign.
Ethereum course rises fast, but hype gets out of hand
The Ethereum Koers shot up by more than fifty percent in the past month. At the same time it went wild on SocialMedia: ETH dominates the conversation. Santiment sees a clear pattern in that. “As soon as a coin receives so much attention, that is often the start of a correction,” says the platform.
What is striking: the relationship between Ethereum and Bitcoin (BTC) has risen by seventy percent since May. But that growth does not seem to rest purely on foundations. It is mainly the hype that dominates.
Too much hype, too little realism?
Social dominance is one of the signals that often precedes a races peak. If a coin on social media becomes so dominant that it is not about anything else, that is usually not a good sign. “The market gets overheated, and then often comes the blow,” says Santiment.
Earlier we also saw this at Bitcoin. When BTC was at a record high and claimed almost half of all crypto reports, a drop in price soon followed. Yet this time it is not that time: memecoins such as Shiba Inu (Shib) and Pepe (Pepe) remain relatively quiet. And that keeps the chance of further growth alive.
Large companies step into Ethereum
Yet there is also good Ethereum news. The interest of large companies in Ethereum is growing. Sharplink Gaming and Bitmine Immersion Technologies have recently purchased substantially. According to Santiment founder Maksim Balashevich, this can be the start of a ‘Michael Saylor moment’ for Ethereum.
He refers to the aggressive Bitcoin strategy of the company Strategy, which is now being followed. Now also with Ethereum. Investor Mike Novogratz from Galaxy Digital also sees it: “There is little ETH available. That is why I think Ethereum Bitcoin can surpass in the coming months.”
Whether Galaxy is actually switching Bitcoin on for Ethereum? That remains for the time being with rumors.
Source: https://newsbit.nl/ethereum-koers-in-gevaar-analisten-waarschuwen-na-extreme-euforie-op-socialmedia/
