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.
[adinserter block="1"]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.
“If this chart ticks down further into negative, it would be a great sign that a price bottom (dip buy opportunity) is on the horizon.”
[adinserter block="1"]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.
“Since late May, Ethereum’s mean dollar invested age has been a pretty steady rise. But see the tan line beginning to dip down again over the past 3 days? This is an extremely promising sign, as it indicates that dormant dollars that were invested in quiet ETH addresses are beginning to move once again.”
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any assets including cryptocurrencies, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/tsinik
