"Ethereum, 'Extremely Optimistic' on Social Media... Warning of Potential Price Crash"

Major social media platforms are showing signs of overheated investment sentiment toward Ethereum (ETH), raising the possibility of a short-term correction.

According to cryptocurrency media outlet Cointelegraph on the 26th, on-chain analytics firm Santiment stated, "With Ethereum increasing more than 50% over the past 30 days, mentions on social networking services (SNS) have also surged," and analyzed that "such 'extreme euphoria (optimism)' could be a precursor to a price crash."

Santiment said, "Since early May, the Ethereum/Bitcoin price ratio has increased by approximately 70%, and accordingly, Ethereum's social dominance has expanded abnormally." Generally, a sharp rise in the social dominance of a particular asset is interpreted as a sign of an overheated market.

Ethereum is currently trading at the $3,750 level, having risen 51.84% over the past 30 days. However, Santiment noted, "There are no clear signs of overheating in meme coins at this time," and assessed that "this bull run may not yet have reached its peak."

Expansion of demand at the corporate level can also act as a positive signal, according to the analysis. Some companies, such as SharpLink Gaming and Bitmine Immersion Technologies, have included Ethereum as a financial asset.

Maksim Balashevich, an analyst at Santiment, said, "Such moves are creating the 'Ethereum version of Michael Saylor' narrative and could act as a catalyst for ETH price appreciation."

Additionally, Galaxy Digital CEO Michael Novogratz also remarked, "There is currently not much Ethereum in circulation," and said, "There is a possibility that over the next 3–6 months, it could record higher returns than Bitcoin."