Ethereum’s price bullish momentum has been unstoppable since the ETH gained over 80% in the past month. However, since price corrections do occur in bull markets, ETH has slumped by over 8% in the past 12 hours after reaching an all-time high at a price of $4,221.
Ethereum’s social sentiment has to go euphoric highs as the second-largest cryptocurrency continued to record higher highs.
According to on-chain data from Santiment, the amount of Ethereum mentions on social media made an all-time high of over price of 3,600 in a five-minute interval frequency in early May. Ether reached ‘peak hype’ on May 3, indicating that the crowd was feeling euphoric about the Ethereum ETH price action.
Despite the optimism among investors, extreme ETH spikes in social volume could indicate overvalued market conditions, coinciding with short-term consolidation.
Ethereum’s Network Profit/Loss (NPL) witnessed a substantial increase on May 9, showing that an extensive number of ETH addresses were in profit. The massive hike in NPL could foreshadow that investors were to realize ETH price gains, benefiting from the immense bull rally that has continued for weeks.
Taking a look at ETH price on the daily chart, it seems to be forming an ascending parallel channel. This type of technical pattern can be drawn adjacent to the existing channel to determine a potential bullish target, which puts ETH price at a price of $4,677.
The recent downswing pushed Ethereum price to lows of $3,660. Although it has now regained strength to trade above the price of $3,900, it must close above this crucial support level. Failing to do so could see ETH price dive to the next support level at $3,572.
IntoTheBlock’s In/Out of the Money Around Price model shows that the most significant support level that could keep falling ETH prices at bay sits between $3,764 to $3,879, where over 278,000 addresses bought 7 million ETH.
On the flip side, the IOMAP cohorts reveal that ETH price might face resistance ahead at $3,947, where 319,000 addresses had previously purchased 1.5 million ETH.
Ethereum transactions worth over $100,000 has also shot up during the past week, indicating an elevated activity by large Ethereum investors. Major spikes in whale transfer counts could suggest a local top for Ethereum ETH price.
Institutional investors have started to take profit over the past week as ETH made new all-time highs. According to a report by CoinShares, fund providers have seen outflows that suggest continued profit-taking behavior.
It is worth noting that the report also indicates that ETH adoption has steadily risen. Ethereum-related investment products have seen a new record of $16.5 billion assets under management after an inflow of $60 million last week.
Bitcoin-based financial products reached this threshold in AUM in December 2020, indicating that institutional investors are slowly embracing Ethereum.
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