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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