- Social media activity linked to Ethereum (ETH) has reached levels that could indicate a short-term price correction, according to Santiment.
- Ethereum’s price increased by over 50% in the last 30 days, trading around $3,750.
- Other data suggests the rally may not be over, as marketwide speculation is not at peak levels.
- Corporate treasury interest, including major purchases by SharpLink Gaming and Bitmine Immersion Technologies, could contribute to future price increases.
- Similar social media hype previously signaled short-term peaks for Bitcoin as well.
Ethereum’s recent price surge may be near a pause, according to analytics firm Santiment. On Friday, Santiment reported that social media mentions for Ethereum have hit “extreme euphoria,” which often signals that a rapid rise might be followed by a short-term correction.
Ethereum (ETH) has grown more than 50% over the past 30 days, now trading at about $3,750, based on Nansen data. Santiment’s report notes the price ratio of Ethereum to Bitcoin has jumped 70% since early May, which the firm calls “a massive spike in social dominance.”
Santiment explained that when online discussions about a cryptocurrency surge to an unusually high level, it often means the asset is overhyped. “It suggests the asset is over-hyped and the trade is becoming crowded, increasing the risk of a price correction,” the report states.
Despite the warning, Santiment pointed out that this may not be the end of Ether’s rally. The company observed that social media focus on memecoins, which often signals wider market speculation, remains low. “A true marketwide top is often characterized by widespread, irrational speculation, and the absence of that could suggest this rally isn’t over,” Santiment added.
Interest from companies adding Ether to their corporate reserves is also growing. SharpLink Gaming and Bitmine Immersion Technologies have made large ETH purchases, leading Santiment analyst Maksim Balashevich to note that a narrative similar to that of “Michael Saylor for Ether” may boost the asset’s value further.
Galaxy Digital CEO Michael Novogratz commented that the limited supply of ETH could allow it to outperform Bitcoin over the next three to six months. Santiment previously issued a warning regarding Bitcoin this week, citing a social media surge around new record highs for the asset, which can indicate a short-term peak.
Santiment analyst Brian Quinlivan noted, “As Bitcoin’s market value crept above $123,100 for the first time in its 17+ year history, there was an equally historic social dominance spike.”
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