Ethereum Breaks Back Above $3,000, Will FOMO Lead To Top Again?
February 22 2024 - 7:00AM
NEWSBTC
Ethereum has once again broken above the $3,000 level after
previous attempts ended in failure as FOMO took over the investors.
Ethereum Has Rallied 3% In Past Day To Break Back Above $3,000
Earlier, Ethereum had made two attempts at the $3,000 level, but
both of them had turned out to be brief as the asset quickly
retraced back to lower levels. In the past day, ETH has once again
made a push towards the mark, as the chart below shows. ETH appears
to have shot up in the past day | Source: ETHUSD on TradingView In
this latest surge, ETH has seen a sharp recovery of more than 3%
from around the $2,900 mark to the current levels. The coin is now
up 8% in the past week, making it the second-best performer among
the top 10 cryptocurrencies, just behind BNB’s 10% profits. Related
Reading: Is Altcoin Season On? Here’s What Glassnode Data Says From
the graph, it’s visible that Ethereum is now within touching
distance of setting a new high for the year. But ETH investors
would be wondering if this rally would sustain or if it would end
up losing steam, just like the previous ones. If data is anything
to go by, market sentiment may have been the reason behind the
demise of the last surges. ETH’s Previous Surges Topped Out As FOMO
Took Over Traders According to data from the analytics firm
Santiment, the latest top above $3,000 occurred as the crowd
euphoria spiked. The indicator of interest here is the “Social
Volume,” which keeps track of the total amount of discussion that
social media users are participating in around a given term or
topic. The metric calculates this value by counting up the number
of posts/threads/messages across the major social media platforms
that are making at least one mention of the topic. The below chart
shows the data of the Social Volume related to two Ethereum topics:
The Social Volume related to the latest surges | Source: Santiment
on X The first Social Volume here has been filtered for $3,000. As
is visible in the graph, this metric spiked as ETH broke above
$3,000 for the first time since April 2022 a couple of days back.
This would suggest that discussions around the topic had spiked
high as traders had celebrated the break. As it had turned out,
though, the surge was pretty short-lived. In the second attempt,
the Social Volume related to terms like “buy Ethereum” had
registered a large spike, implying that FOMO had developed among
the traders. Historically, FOMO has been something that has made
tops likely, as ETH’s price has tended to go contrary to the
expectations of the crowd. This is likely the reason why the top
coincided with this spike. Related Reading: Bitcoin FOMO Hasn’t
Spiked Yet: Green Signal For Rally To Continue? A similar
phenomenon occurred with the small recovery surge observed
yesterday, as Santiment has highlighted in the chart. It would seem
that greed had once again led to the coin topping out. It now
remains to be seen how the market reacts to the latest rally above
$3,000. If FOMO around Ethereum once again spikes on social media,
then it may very well be a sign that this surge, too, may only be
temporary. Featured image from Kanchanara on Unsplash.com,
Santiment.net, chart from TradingView.com
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