- Ethereum price hits $2,132 amid ETF frenzy, but Santiment warns of potential risks.
- Ethereum network utility metrics increase while whale transactions surge.
- Santiment warns of potential shifts in market dynamics due to uncertainty around ETF approval.
Prominent market tracker Santiment has stressed the need for caution amid the excitement surrounding the potential launch of a new Ethereum exchange-traded fund (ETF). In a recent tweet, market intelligence platform Santiment noted that Ethereum has witnessed a significant surge in value, reaching as high as $2,132.
Santiment attributed the ETH price increase to optimism following a new Ethereum ETF application. Per the Santiment’s data, the development has placed Ethereum as the second most discussed asset in the crypto market.
Emphatically, the news of BlackRock’s official filing of a Spot Ethereum exchange-traded fund like the firm’s Bitcoin ETF application awaiting approval from the SEC has sparked a frenzy around Ethereum.
According to Santiment, many in the community speculate that BlackRock’s earlier Bitcoin ETF filing, submitted in June, might also be close to approval, given the current developments with Ethereum.
Amid the euphoria, Santiment’s analysis indicates that Ethereum’s on-chain metrics show varied signals. It disclosed that Ethereum recorded its highest day of whale transactions in the past three months, its tenth-highest day of social dominance, and its second-lowest day of accumulation by holders of $100K-$1M ETH coins.
Despite these mixed signals, Santiment stated that Ethereum’s network utility metrics, such as transaction volume and circulation, have gradually increased. According to the market tracker, the uptick in network utility metrics is typically a positive indicator of future market value.
However, it highlighted that the spike in whale transactions, significant selling by key stakeholders, and increased social dominance during price rises suggest a trend of FOMO and potential profit-taking.
Ultimately, Santiment urged caution as the prospect of a new Ethereum ETF is exciting and could introduce new traders to the crypto market. It noted the uncertainty around the ETF’s confirmation could lead to a shift from initial excitement to impatience among traders, impacting Ethereum’s market dynamics.
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