Ethereum’s sentiment declines
Following the excitement surrounding the approval of Ethereum's spot Exchange-Traded Fund (ETF), the overall mood surrounding the cryptocurrency saw a dip. Yet, despite this dip in sentiment, various indicators hint that Ethereum could be gearing for an upward trajectory as soon as spot trading kicks off again.
Upon examining the sentiment analysis from Santiment, a noticeable decrease in Ethereum's general mood was observed. The data revealed a significant increase in sentiment by over 6% on the 20th and 21st of May.
This was followed by a temporary reduction to about 2%, only to leap above 6% once again on the 23rd of May. This leap was in sync with the news breaking about the ETH spot ETF's approval, illustrating a peak in discussions and overall mood during that time frame.
Post that peak, there was a downturn in the weighted sentiment, now showing a negative tilt with the sentiment at around -0.4. This shift suggests that the scales have tipped towards a more negative outlook on Ethereum compared to the positive vibes it experienced a few weeks back.
In the same vein, social engagement saw peaks aligning with the surges in sentiment, touching a high of 4,197 during those times. Yet, akin to sentiment, social engagement has witnessed a considerable drop, standing around 415 currently.
Delving into Glassnode’s new addresses data uncovers a continuous influx of new addresses, despite the subdued mood. Presently, the count of fresh addresses has surpassed 105,000.
While the initial days of the month saw some downturns, a positive trend is now apparent. This underlines a growing creation of addresses in anticipation of the commencement of spot ETH trading.
This uptrend could further escalate once the trading officially begins.
Exploring Ethereum's weighted funding rate through Coinglass exposes its sustained positivity amidst recent downturns.
The funding rate stood at approximately 0.092% at this moment, indicating a predominance of buyers in the market and a solid optimism towards a potential escalation in Ethereum’s market price.
Currently, Ethereum is trading at about $3,690, marking a 0.4% increment. These modest gains come on the heels of a more than 3% dip on 7th June, which saw Ethereum drop from the $3,800 bracket.
