Data shows that Ethereum (ETH) is sour on social media recently. This could actually help the coins overturn the price.
Ethereum’s positive/negative emotions have declined recently
Social media traders have become bearish against Ethereum following a price cut, according to data from analytics firm Santiment. The indices of relevance here are “positive/negative emotions” and tell us whether social media users are bullish or bearish towards a particular coin.
Metrics work by filtering posts/threads/messages about at least one asset through major social media platforms. We then guide these posts into a machine learning model to determine whether the comments are positive or negative.
Finally, the indicator takes the ratio between two types of posts to represent the “net” situation for the entire trader. A value of this metric exceeds 1 means that the positive post exceeds the negative one, but being under the mark suggests that bearish feelings are retained by the majority.
Now, here is the chart shared by the analytics company.
Looks like the value of the metric has slipped under the 1 level in recent days | Source: Santiment on X
As shown in the graph above, Ethereum’s positive/negative sentiment witnessed some very large spikes in the last few months of 2024. The peak of metrics during that period corresponded to positive comments that outweighed negative comments at least three times.
The overwhelming bullish sentiment was the result of the incisive gatherings ETH observed alongside the other cryptocurrency sectors. Interestingly, after optimism spiked among social media users, the run ran out of steam.
This pattern of ETH prices that travel against the expectations of the majority has been spotted over and over again, not just for ETH, but also for common digital assets.
From the charts, we see that positive/negative emotions have seen a prominent cooldown due to the bearish price action that has followed over the past few months.
After the latest continuation of decline, it shows that after getting Ethereum at the $2,000 level, the value of the indicator falls below the neutral 1 mark, indicating that traders on social media platforms believe in the bearish outcome of their assets.
As mentioned before, however, it was a historical pattern that coin prices tended to be in opposition to the views of the crowd. Therefore, in this view, the domination of fear over social media could be something that helps ET achieve bottom.
However, it remains to be seen whether current emotions are negative enough for this effect to take hold, or whether the mood still has to get worse for a rebound to occur.
ETH Price
At the time of writing, Ethereum has fallen more than 13% in the last seven days, floating around $1,900.
The trend in the price of the coin during the last month | Source: ETHUSDT on TradingView
Featured images from charts on Dall-E, santiment.net, and tradingview.com
Editing process Bitconists focus on delivering thorough research, accurate and unbiased content. We support strict sourcing standards, and each page receives a hard-working review by a team of top technology experts and veteran editors. This process ensures the integrity, relevance and value of your readers’ content.
