After what has been two weeks of an unbelievable rally for the value of Ethereum, the digital asset appears to be working out of steam. ETH’s worth has now declined as soon as extra under $1,600 after a pointy downturn on Tuesday. The offender for this appears to be rising FUD throughout the group.
FUD Might Have Been The Set off
In line with Santiment, the social dominance of Ethereum grew quickly within the final couple of days. Whereas this could generally be an excellent factor, it tells a adverse story this time round. Ethereum is now dominating 21% of cryptocurrency dialogue on social media and the on-chain knowledge aggregator says this may be proof that FUD may be behind the dip. Nonetheless, this will not be the one motive.
A report from Bitcoinist had beforehand proven that profit-taking in giant belongings akin to Bitcoin and Ethereum had been ramping up with the rise in worth. Santiment additionally highlights this in its publish, pointing to the spike within the profit-taking ratio on January 20. Taking this in live performance with the rising FUD, it presents a recipe for catastrophe for the digital asset.
ETH social dominance signifies FUD | Supply: Santiment
One other outstanding occasion was the Wormhole attacker began shifting the stolen funds round. On Monday, the attacker moved over $155 million in ETH to OpenOcean which they proceeded to alternate for staked ETH tokens akin to stETH and wstETH.
The dumping of those cash on the open market noticed promote strain mount on ETH throughout this time. It contributed to the already declining momentum, ensuing within the present dip within the worth.
Can Ethereum Get better From Right here?
Regardless of the latest decline, the general sentiment for Ethereum continues to be skewing largely towards purchase. It’s because the cryptocurrency continues to be buying and selling nicely above its 50-day and 100-day shifting averages. And even with the decline, it continues to development round its 200-day shifting common.
What this reveals is that, at the least within the brief to mid-term, there may be nonetheless a whole lot of bullish sentiment surrounding the digital asset. Add within the ample help that has constructed up round $1,500 over the past couple of days and Ethereum continues to be presenting as a formidable selection of funding.
ETH worth falls under $1,600 | Supply: ETHUSD on TradingView.com
Traders are additionally seeing good earnings throughout this time with 57% of all holders in revenue. Figures like these additionally assist to push a bullish narrative for the digital asset as extra buyers attempt to reap the benefits of the dip and transfer into the inexperienced. General, so long as ETH maintains its momentum and buying and selling quantity continues rising, it’ll retest the $1,600 resistance as soon as extra.
ETH’s worth is altering palms at $1,555 on the time of this writing. Its worth is down 5.27% within the final 24 hours however buying and selling quantity is up 11.91% over the identical time interval to be sitting at $9.32 billion.