Ethereum’s social dominance surged after Trump’s cryptocurrency portfolio was revealed.
Bears are in control after ETH broke below a critical support level.
The crypto world is ecstatic over former US President Donald Trump’s Ethereum [ETH] holdings, which has reportedly sparked a surge in Ethereum social activity over the past 24 hours.
Trump’s indictment has been making headlines, but news of his cryptocurrency holdings has overtaken that. Recent reports have revealed that Trump owns a crypto address that holds over $2.8 million worth of Ethereum.
Based on the number of social interactions, the market has reacted to this news with great excitement over the past 24 hours.
Donald Trump holds $2.8 million in ETH, leading to 5.6 million interactions per hour on Ethereum social posts. https://t.co/TYh2loDIBx
— LunarCrush (@LunarCrush) August 16, 2023
The number of social interactions related to Trump’s ETH holdings triggers as many as 5.6 million interactions per hour. In other words, there is a lot of discussion and excitement on social about the former president’s cryptocurrency portfolio.
The surge in social engagement is particularly evident in ETH’s social dominance, which surged to a monthly high within the past 24 hours.
We also observed a surge in volume over the past four days, but this did not translate into bullish demand. In fact, ETH’s price action over the same period was bearish, suggesting that volume reflects selling pressure.
Can Trump spark a bullish shift?
The surge in social dominance suggests that ETH has seen a significant increase in popularity over the past 24 hours. However, it has extended its downtrend over the same period, suggesting that excitement about Trump’s cryptocurrency holdings may not have had a significant impact on market sentiment.
ETH bears have dominated the past few days, resulting in enough selling pressure to push it below long-term ascending support. At press time, it is trading at $1,808.
As the market favors the bears, ETH’s relative strength index (RSI) has fallen below the midpoint. Perhaps the next question should be whether ETH has further to go down or is it accumulating funds in favor of a bullish turn in the coming days.
The supply of ETH held by the top addresses has been steadily increasing over the past four weeks. As of the time of writing, the price is at its highest level in the past four weeks. This confirms that ETH whales have been taking advantage of lower price levels to buy on dips.
Whale accumulation is usually a healthy sign. However, ETH’s recent decline means that profitability has declined, as measured by the market value to realized value (MVRV) ratio, which is near its lowest point in the past four weeks.
