Ethereum: Here’s what is behind significant spikes in ETH’s social volumes
Bitcoin‘s ongoing correction has had a repercussion on the entire cryptocurrency market. Ethereum, the largest altcoin suffered the same fate. At the time of writing, ETH suffered a fresh 4% correction as it slipped below the $3k mark- it traded at the $2,984 mark.
Slowly but surely
The largest altcoin, despite the given drawdown, continued to maintain an impressive social streak. On-chain data provider Santiment reported such an instance where ETH’s address activity ticked bullish numbers regardless of the aforementioned noise.
Considering the graph, Santiment noted:
“Ethereum’s address activity really picked up this week, with Wednesday’s 592k addresses being the highest number of unique interactions in over a month. Meanwhile, social discussion for $ETH has hit its highest levels in over two months.”
At the time of writing, the weighted sentiment metric stood around the -0.9 mark. Contrary to popular opinion, prices tend to move opposite to the crowd’s expectations. So this could inject a positive sentiment as extended negative weighted sentiment sometimes triggers a rally.
On a positive note
Overall, both the aforementioned cases shed light on a bullish scenario for the largest altcoin.
Supporting this insane run-up for the Ethereum price is the supply distribution chart, which shows that institutions and whales have been busy buying the dips. Likewise, as per a previous report, a spike in this metric indicated that investors accumulated in anticipation of an uptrend. Since early March, the wallets holding 10,000 to 100,000 ETH tokens increased their holdings from 24.85% to 25.62%.
Heavy weight investors like the whales continue to remain positive about the price performance of ETH in the upcoming bull run.
That said, things could go south as well. Jack Dorsey, the Twitter co-founder raised some red flags for users. Dorsey, mainly laid out ‘many single points of failure’ thanks to ETH’s price volatility that can negatively affect the price action going forward.