Ethereum
Ethereum Sentiment Takes a Hit After ETF Approval, But It’s Not All Bad News!
- Ethereum’s funding rate has remained positive despite recent declines.
- ETH’s trend also remained bullish despite the price decline.
After the news of Ethereum [ETH] Approval for spot ETFs has softened, its weighted sentiment has also declined. Despite this decline, other metrics suggest that Ethereum could be poised for positive developments once spot trading resumes.
Ethereum sentiment and social volume decline
An analysis of the Santiment sentiment chart showed a decline of Ethereum feeling. The chart indicates that weighted sentiment reached over 6% on May 20-21.
It then briefly declined to around 2% before rising above 6% again on May 23. This spike coincided with the announcement of the ETH spot ETF approval, reflecting increased conversation and sentiment during this period.
However, after this peak, there was a decline in weighted sentiment, which has now become negative. As of this writing, weighted sentiment sits around -0.4.
This indicates that the negative sentiment now outweighs the positive sentiment that Ethereum enjoyed a few weeks ago.
Source: Santiment
Additionally, an analysis of social volume showed spikes corresponding to increases in weighted sentiment. The chart indicates that social volume increased to 4,197 during these periods.
However, like weighted sentiment, it has since declined significantly. At the time of writing, social volume was around 415.
Ethereum’s Trend of New Addresses Continues
An analysis of the new addresses chart on Glassnode revealed that new addresses continued to flow in despite the low sentiment. As of this writing, the number of new addresses exceeds 105,000.
Source: Glassnode
Although there were declines at the start of the month, an upward trend is now evident. This indicates that more addresses are being created before ETH spot trading even begins.
The number of addresses could further increase once trading begins.
Ethereum remains positive on the derivatives side
An analysis of Ethereum financing rate weighted on Change machine showed that it has remained positive despite recent declines.
The chart indicated that the funding rate was around 0.092% at the time of writing. This suggests that buyers are dominating the market and that there is strong belief in a future rise in the price of Ethereum.
– Read Ethereum (ETH) Price Prediction 2024-25
ETH sees slight increases
At the time of writing these lines, Ethereum was trading at around $3,690 after a 0.4% rise. AMBCrypto’s analysis of the daily price trend over the period showed slight increases over the past two days.
These slight increases follow a drop of more than 3% on June 7, which sent Ethereum down from the $3,800 price range.
Source: TradingView