Ethereum Teasing at Breakout While Traders Wait for ETF's to Shake Out

For the 2nd day in a row, Ethereum is the top trending token in crypto, as calculated by the highest increase in discussion vs. its resting average. Traders' upswing in discussion rate toward the #2 asset is a result of the confirmed news that BlackRock has officially confirmed the filing of a Spot Ethereum ETF with Nasdaq. Further, this filing plan is already heading to the US SEC for them to approve.

Naturally, this has led to a moderate level of euphoric sentiment that has pushed Ethereum's price to the brink of blasting through a 1.5-year high.

Currently, the amount of bullish posts are quite abundant. And traders and personalities on social media are not being shy about indicating just how big of a deal they believe these ETF's can be for the crypto sector.

The news has also led to many respected sources in the space to put 2 and 2 together and deduce that Blackrock must have already received some positive indication that its initial ETF filing for Bitcoin (done back in June) must be on the verge of being approved.

Whether these ETF's truly are a foregone conclusion is, of course, up for debate. But we can visually see just how much a lead that Ethereum has on the rest of the field in terms of social volume right now.

Note how just about every 'Connected Word' next to Ethereum is related to the ETF hype, such as 'Blackrock', 'Nasdaq', etc.

But what about Ethereum's network itself? Santiment users enjoy the luxury of being able to deep dive into indicators that signal whether key stakeholders perhaps know something we don't... or alternatively, whether the amount of FOMO from retail traders is creating some new waves.

Ethereum is showing up on 3 main metric leaderboards, according to our Asset Activity Matrix model, which you can make a copy of and use your Sanbase PRO API to use yourself:

  • ETH is having it's #1 highest day of whale transactions in the past 3 months
  • ETH is having its #10 highest day of social dominance in the past 3 months
  • ETH is having its #2 lowest day of $100K-$1M coin holders accumulating

To play devil's advocate, some of Ethereum's actual utility metrics are looking quite strong. We can see that the network has gradually seen an increase in both transaction volume and overall circulation. Utility rises over time are generally what justify current (and future) market cap ascensions.

Regardless, blending these results together, ETH's overall outlook reveal lukewarm results at best. With whale transactions spiking significantly, combined with the key $100K-$1M stakeholder tier dumping, it definitely appears as though there is some concerning profit taking happening.

And to exacerbate the concerns, the social dominance of ETH spiking while the price had been pumping is generally a sign of FOMO and greed.

In conclusion, we can all definitely get excited about the prospect of a new ETF creating new exposure for traders who have previously not been in the crypto space. But be careful about this "will it or won't it be confirmed" narrative lingering for a few weeks or even months. There could be a point where traders' hype dies down and gets replaced with impatience.


Disclaimer: The opinions expressed in the post are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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