Investor sentiment towards Ethereum has been improving lately. Key metrics such as the MVRV ratio and the difference between long and short suggest that there may be some selling pressure on Ethereum in the coming days.
Ethereum has faced a lot of volatility over the past year, especially post-merger. However, according to Santiment’s recent datathe tide may soon turn in favor of Ethereum as investor sentiment appears to be very bullish at the moment.
Read the Ethereum price forecast for 2023-2024
The public sentiment
According to data from Santiment, traders were interested in Ethereum over other cryptocurrencies such as BNB, BTC, and ADA.
Interestingly enough, sentiment for Ethereum remained positive despite declining social activity. According to data from LunarCrush, the number of social mentions and engagements for Ethereum has decreased significantly over the past month.
To be precise, social mentions for Ethereum were down 33.7% and engagements were down 12.8%.
Source: Sentiment
Now the behavior of the retail and big pocket investors has been in line with the rising demand. Based on Glassnode’s information, the number of addresses with more than 10 Ethereum reached an all-time high of 352,360 addresses at the time of writing.
In fact, the number of non-zero addresses on the Ethereum network has grown significantly in recent months. At press time, this statistic stood at 92.36 million.
Source: glasnode
In addition to the investors, the validators also supported the network. Based on Staking Rewards data, the number of validators on Ethereum has grown 2.3% in the last 30 days. At the time of writing, there were 496,462 validators.
One of the reasons for the growing number of validators on the network may be higher revenue. Over the past week, sales of these validators have increased by 14.24%. And at the time of writing, the validators’ total revenue was $959.18 million.
Source: Staking Rewards
The “exchange”.
That said, the Ethereum derivatives market had many things against it.
According to data from Coinglass, the number of short positions being taken against Ethereum has increased significantly in recent days. At the time of writing, 51.53% of all positions taken against ETH were short.
Source: mint glass
Meanwhile, the MVRV ratio for Ethereum has been rising over the past two weeks, according to information from Santiment. This suggested that most Ethereum holders would benefit if they decided to sell.
Many of these Ethereum holders who were profitable were short-term holders. This was indicated by the negative long/short divergence for Ethereum.
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Source: Sentiment
This post Retail investor sentiment in Ethereum looks bullish, but will it help ETH?
was published first on https://ambcrypto.com/ethereum-retail-investors-sentiment-looks-bullish-but-will-it-help-eth/
