Summary
- On-chain analytics firm Santiment analyzed that as the price of Ethereum recently approached $3,500, investors' optimism spread significantly.
- This optimistic investor sentiment saw positive mentions of Ethereum increase by 2.7 times, reaching the highest level since July.
- Santiment said excessive market optimism could lead to a short-term correction, and that the true buy signal could come when expectations of re-entering $4,000 subside.
Ethereum investors have shown optimistic attitudes following the recent price rebound.
On the 6th (local time), CoinDesk reported that on-chain analytics firm Santiment analyzed that "as Ethereum briefly approached $3,500 the previous day, investors' optimism spread rapidly."
According to Santiment data, the ratio of positive mentions of Ethereum on social media was 2.7 times that of negative mentions that day, marking the highest level since July.
Santiment explained, "Ethereum investors shifted from extreme pessimism to optimism in a short period," adding, "as the price rebounded to around $3,500, the market judged that it had 'returned to normal track.'"
However, Santiment warned, "market optimism could instead lead to a short-term correction," and "prices often tend to move in the opposite direction of public expectations." It added, "the true buy signal will be when investors stop expecting a quick recovery and the expectation of re-entering $4,000 subsides."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
