Sorry Bulls: Ethereum Expected to Drop Towards $300 as Rally Weakens

Sorry Bulls: Ethereum Expected to Drop Towards $300 as Rally Weakens

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Santiment, a blockchain analytics firm, reported just recently that social media mentions of Ethereum are reaching six-month lows. This comes as the DeFi space has rapidly slowed down as ETH’s price has dropped.
Michael Van De Poppe, a crypto analyst and a trader at the Amsterdam Stock Exchange, recently said that he fears a move under 0 in the near future.

Ethereum Drop Triggers Fears of a Steeper Correction

This weakness and continued inability to surmount the resistances at 5-375 in the near term is sparking fears of a deeper drop.
Despite this weakness in ETH’s price, social media trends purportedly indicate that now is a good buying opportunity.

“$ETH #ETHEREUM Further downwards momentum to expect here. The crucial area that I’ll be interested in is 0-280. Since a while, actually.” 

Van De Poppe recently shared the chart below, which shows that the cryptocurrency remains below the aforementioned resistance. This may trigger a drop towards the local lows at 5, then even lower into the 0-280 range. He elaborated:

Social Trends Suggest Now Is a Good Buying Opportunity

While this may seem bearish, Santiment believes that this indicates that now may be a good time to enter an Ethereum position.
“The social volume of #Ethereum is nearing 6-month low levels across social discourse platforms as traders look elsewhere for volatility to trade. However, assets like $ETH typically see the biggest buy opportunities when crowds are disinterested.”
Chart of ETH’s price action over the past few months with a social volume analysis by crypto research and data firm Santiment (@Santimentfeed on Twitter)

Chart of ETH’s price action over the past few months with an analysis by crypto trader Michael Van De Poppe (@Cryptomichnl on Twitter). Chart from TradingView.com

The firm commented on the matter:

Photo by arash payam on Unsplash
Price tags: ethusd, ethbtc
Charts from TradingView.com
Sorry Bulls: Ethereum Expected to Drop Towards 0 as Rally Weakens

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Counterintuitively, this may suggest that Ethereum may soon move higher. Negative funding rates in consolidation are indicative of a market that has the potential to move higher.
Like Bitcoin, Ethereum was pushing higher from last week’s lows, at least until the past few hours. In the span of about 30 minutes earlier today, the leading cryptocurrency dropped from 5 or so to 4, marking a small yet notable drop.

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