Ethereum [ETH] appears to have emerged from the rally sparked by ETF hype as bulls begin to rally.
At press time, the world’s largest altcoin is down 3.7% over the past day and 2.5% over the past week as the market awaits approval of the ETF’s Form S-1. So, is the rally over?
AMBCrypto’s analysis on TradingView found that Ethereum has been unable to sustain its highs and is currently consolidating at lower levels.
The moving averages (blue MA50 and red MA200) show a cool-down period.
Initially, the price surged above both moving averages in a strong bullish move but has since turned lower and is currently trading below these key indicators as we see a shift in bearish momentum in the short term.
The RSI is around 45, also suggesting a lack of strong buying momentum, with the value leaning more towards the oversold territory, but not absolutely so.
Ethereum’s social volume also dropped significantly, indicating low public interest and sentiment towards the altcoin.
A decrease in social engagement could lead to a drop in Ethereum prices, as fewer discussions could be associated with reduced trading activity and demand.
Interestingly, the volume in Ethereum derivatives markets has risen sharply by over 70%, implying increased market participation.
Notably, the long/short ratios across different platforms also show more bullish sentiment on platforms like Binance [BNB] and OKX.
The Future of Ethereum
Ethereum’s on-chain data shows a clear bullish trend, with 89% of holders currently making money at current prices, indicating that the strong upward trend is benefiting the majority.
Tokens are concentrated among large holders (51%), which suggests that while there could be a massive sell-off leading to higher volatility, the market remains stable and these major holders are likely to maintain their positions.
Overall, Ethereum bulls appear to be cooling off for now, likely due to the latest U.S. jobs data. But the rally is not over yet.
