Risks of Ether "arriving to London"

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Aug 5, 2021

Assets covered: Ethereum (ETH)

Metrics used: Active Addresses, Social Dominance

Chart layout: https://app.santiment.net/s/7boJYX5H

Minutes before the London Hard Fork goes live on Ethereum, we'd like to review what's behind this anticipated event, what is the crowd expecting and what could be an outcome.

  1. 1. Social sentiment seems very bullish on Ether:
Source: Sangraphs
  1. But looking at the current social trends, we'd suggest EIP-1559 is definitely not a topic #1 for crypto community overall.

2. Social dominance is increasing:

3. Daily active addresses are dangerously declining on a growing price:

These two charts indicating the crowd is more talking (social dominance) than doing (active addresses). And market could have a surprise. Seems like there is a lot of volatility coming. Taking into account very bullish expectations, there is a chance we could go down.

If we take a closer retrospective view to the social dominance, we might notice that there were times when dominance goes down and the market keeps ranging for a while:

This is what we might experience as well, some ranging.

Or if we take a look at earlier period, from August 2020 to January 2021, areas when the crowd stops talking much about an asset this is where price starts picking up:

This is the setup to be looking for a bull market, price starting to grow slightly, people don't notice and not talking much.

Not there yet.


ETH seems to be in high risk/low reward zone (short term).

Charts layout: https://app.santiment.net/s/7boJYX5H

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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Aug 5, 2021

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