Analytics Firm Santiment Issues Ethereum Alert, Details Potential Price Path Based on Protocol Growth
Crypto analytics firm Santiment has warned traders that Ethereum (ETH) could face an increase in bearish momentum.
In a new report, Santiment Say In a bleak macro environment, Ethereum has closely followed the price action of the S&P 500.
“ETH continues to closely monitor the S&P as global uncertainty remains.
If the S&P is indeed in the lead, it will be important to retest the level to see a rebound to continue bullishness, otherwise Ethereum is unlikely to hold its ground. “
According to Santiment’s chart, the S&P needs to hold above 4,100 for Ethereum to have a chance to continue bullish. The S&P 500 closed the week at 4,057 after falling 3.37% on Friday.
The company is also closely monitoring Ethereum’s network growth and said on-chain metrics are flashing red flags.
“ETH’s network growth has been steadily declining since early August, while the price has continued to climb. This divergence is usually not a healthy divergence, as it shows that there are few new market participants to support the price.
Everyone who wants a position has probably already been hired. “
Ethereum is currently valued at $1,503, down more than 10% in the past 24 hours.
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