Santiment: Ethereum Showing Positive Signs After Crypto Market Slight Dip
According to Blockchain analytics company Santiment, Ethereum (ETH) is showing some “encouraging” metrics, as the overall crypto market took a slight dip from the latest up run.
The second-largest crypto asset by market cap is trading at $3,264 at time of writing, down 2.5% from a recent high of $3,346 on Tuesday, according to CoinMarketCap.
Ethereum is still up 43% on a monthly chart, but the asset has has been outperformed in August by a set of altcoins, such as its competitor Cardano (ADA), which is up 126% in the monthly chart
According to Santiment analysis Ethereum’s less volatile price action could mean that ETH is less of a risk to hold now compared to coins like ADA.
Ethereum’s token circulation has also recently exceeded two-month high levels, Santiment points out.
Source: Santiment
“The amount of unique tokens moving on the ETH network showing an increase here is a promising sign that if it does drop back below $3,000 again, it may not be for long if circulation sustains itself up at these increased levels.”
The analytics firm also notes that after four weeks of Ethereum seeing support on social media as its price went up, the crypto asset’s social sentiment is finally on a downswing compared to historical averages.
Source: Santiment
“If this chart ticks down further into negative, it would be a great sign that a price bottom (dip buy opportunity) is on the horizon.”
Santiment also analyzed the mean dollar invested age, which represents the average age of each dollar invested in Ethereum, and notes that investors should watch when the indicator shifts to a downtrend, as it could signal that a new phase of the bull market is underway. ETH’s mean dollar invested age began to tip downward this week.
Source: Santiment
“Since late May, Ethereum’s mean dollar invested age has been a pretty steady rise. But see the tan line beginning to dip down again over the past 3 days? This is an extremely promising sign, as it indicates that dormant dollars that were invested in quiet ETH addresses are beginning to move once again.”
