Ethereum Euphoria: Experts Warn of Potential Correction Signals

The recent rally of Ethereum has led to a significant increase in mentions of the cryptocurrency across social media platforms. This surge has reached a level deemed as «extreme euphoria,» suggesting a potential risk of correction, according to experts from Santiment.

«Since the beginning of May, Ethereum’s price in relation to Bitcoin has skyrocketed by an astonishing 70%. This has resulted in a notable spike in social media dominance, which often serves as a warning sign,» they observed.

Typically, elevated metric values point to asset overvaluation, the analysts from the research platform added.

As reported by CoinGecko, the second-largest cryptocurrency is trading around $3750, boasting a 53.5% increase in value over the past month.

However, other indicators suggest that Ethereum’s upward momentum may continue, the experts acknowledged. A low level of interest in meme coins on social media is one such sign. Historically, during the peak of market cycles, investors tend to shift towards highly speculative coins, they explained.

Experts at Santiment believe that a trend towards the establishment of corporate treasuries in ETH could serve as a potential catalyst for Ethereum.

«This narrative might provide the support needed for another leap towards new highs,» analysts emphasized.

Regarding anticipated price benchmarks that might signal a reversal, they indicated $125,000 for Bitcoin and $4050 for Ethereum.

It’s worth noting that in mid-July, Santiment experts proclaimed the onset of an altseason. Following this, the price of the leading cryptocurrency reached a new high of over $123,000.