Ethereum Could Rebound Off The Current Market FUD
Here are two Ethereum metrics that may signal a rebound in the cryptocurrency’s price:
- The Binance Funding Rate: This metric tracks the periodic fee that Ethereum derivative contract holders on the Binance platform are paying to each other. Negative values indicate a bearish sentiment, while positive values suggest a bullish sentiment.
- The Social Dominance: This metric measures the amount of discussion that Ethereum is receiving on major platforms relative to the top 100 assets in the sector. High values suggest optimism and hype in the market.
The Binance Funding Rate has recently become less negative but remains at notable red values, indicating that the majority of investors are still betting against Ethereum. The Social Dominance of the coin has also remained high, suggesting continued engagement and discussion among investors.
Given the shift in sentiment on the derivative market and the presence of fear, uncertainty, and doubt (FUD), there is a possibility of a rebound for Ethereum. The current FUD could potentially result in a mass liquidation event that fuels a price increase.
Hot Take:
Despite recent price declines, the combination of the Binance Funding Rate and Social Dominance metrics indicates a potential rebound for Ethereum. Investors should closely monitor these metrics and consider the possibility of a price increase in the near future.
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