Ethereum Displaying Encouraging Signs Amid Crypto Market Pullback: Santiment
As the overall crypto market continues to retreat, Ethereum (ETH) is displaying some “encouraging” metrics, says the blockchain analytics firm Santiment.
The second-largest crypto asset by market cap is trading at $3,106.75 at time of writing, down more than 7% from a recent high of $3,346 on Tuesday, according to CoinGecko.
Ethereum is still up 35% overall on the month, but the asset has seen less euphoric August gains than certain other altcoins, such as its competitor Cardano (ADA), which is up 99.9% in the past 30 days.
Santiment indicates that Ethereum’s mellower price action could mean that ETH is less of a risk to hold now compared to coins like ADA.
Ethereum’s token circulation has also recently exceeded two-month high levels, according to the analytics firm.
“The amount of unique tokens moving on the ETH network showing an increase here is a promising sign that if it does drop back below $3,000 again, it may not be for long if circulation sustains itself up at these increased levels.”
Santiment also notes that after four weeks of Ethereum seeing support on social media as its price went up, the crypto asset’s social sentiment is finally on a downswing compared to historical averages.
The analytics firm also looks at the mean dollar invested age, which represents the average age of each dollar invested in Ethereum.
Santiment says investors should watch when the indicator shifts to a downtrend, as it could signal that a new phase of the bull market is underway. ETH’s mean dollar invested age began to tip downward this week, according to the firm.