The Ethereum price has recently gone through a very bullish spell. Now that things have tapered off a bit, it would appear that bearish sentiment is kicking in again. A bit premature, perhaps, although Bitcoin’s rise isn’t always beneficial to alternative markets.
Ethereum Price Momentum Wanes Slightly
Looking at the recent Ethereum price action, it is evident that this uptrend was brewing for some time now. Since May of 2020, there has been a period of accumulation that seemed to come to an end. It eventually allowed for a price increase to $250, before the next phase of accumulation began.
That in itself ended a few days ago, when the Ethereum price suddenly exploded to $300, and even peaked at $324 for a little while. It even seemed as if Ether would remain bullish while Bitcoin continued its sideways momentum. Eventually, the tables turned, and Bitcoin started gaining rapidly, whereas Ethereum lost momentum.
The big question is what will come next. Considering how the Ethereum price is still up by 43.8% in the past 30 days, there is no real cause for concern. In terms of the ETH/BTC ratio, things are looking a bit bleak. Levels of 0.0316 BTC will not be seen again for a while, as the ratio seems to be trending toward 0.0295 BTC first and foremost. That situation can still change at any given momentum.
Bullish Sentiment is Dipping
As is normal when a currency loses value, there will be a dip in social sentiment. For Ethereum, the overall engagement and news volume is on the rise, but the social sentiment is just 67% bullish, down from 69.3%. Not necessarily the trend market speculators are looking for, but this temporary Ethereum price dip always seems to cast a shade of gloom over the community.
Another interesting factor can be found by looking at the actual price chart. A major red candle was formed in the early hours of the morning, but over half of the “candle body” has been eaten up again. This confirms that there is some profit taking going on, but not necessarily enough to keep the Ethereum price down for too long.
As of right now, the ETH price trend has successfully overcome a temporary pushback near the 50% fib line. The next three levels were taken in quick succession, warranting a small pushback. Given the lack of actual selling pressure, a continuation to the 100% Fib – or $361.5 – remains very likely.
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