Data indicates that Ethereum sentiment on social media is not particularly optimistic at this moment, an aspect that may facilitate a continuation of the asset’s upward trend.
Ethereum Positive/Negative Sentiment Remains Subdued
In a recent update on X, the analytics company Santiment discussed the sentiment surrounding Ethereum among social media users. The indicator presented by Santiment is the “Positive/Negative Sentiment,” which compares the positive and negative remarks about ETH across prominent social media channels.
This metric differentiates between the two comment types by processing user posts/threads/messages using a machine-learning model. After categorization, it quantifies each type and calculates the ratio between them.
Below is the chart shared by the analytics firm illustrating the trend in Ethereum Positive/Negative Sentiment over the past several months:
As shown in the graph, the Ethereum Positive/Negative Sentiment notably experienced a drop during the asset’s breakout earlier this month. This implies that social media users were not fully persuaded by the rally. The continuation of the ascent since then has led to a slight improvement in sentiment, yet it still remains significantly lower than the peak observed last month. Therefore, it appears that retail investors are skeptical, even though the cryptocurrency approaches its all-time high (ATH).
If historical trends are any indication, this situation could actually serve as a favorable sign for ETH. “Prices typically move in the opposite direction of retail traders’ expectations,” notes Santiment. The analytics firm has highlighted on the chart certain instances showcasing this phenomenon. It seems that spikes in FOMO resulted in price declines for the asset, while heightened FUD prompted price increases.
“With major stakeholders collecting spare coins that small ETH traders are willing to sell at the moment, prices exhibit minimal sentiment resistance against breaking through and creating new history in the near term,” Santiment elaborates.
In other developments, Ethereum Futures Open Interest has surged alongside the price increase, as analytics firm Glassnode has noted in an X update.
The Futures Open Interest gauges, as implied by its name, the complete volume of futures-related positions currently open across all centralized derivatives exchanges. The chart indicates that this metric has surpassed the $35.5 billion threshold, marking a new record.
ETH Price
After a rally exceeding 7% in the past 24 hours, Ethereum has reached the $4,730 threshold, now within close proximity of the ATH.
