Santiment analysts have warned of an imminent correction in the price of Ethereum

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The price of ether (ETH) cryptocurrency is approaching a dangerous retracement level. This is the conclusion reached by Santiment. To assess the position of ETH, analysts analyzed several indicators at once:

number of active addresses;
trading volumes;
social volume;
market sentiment;
MVRV coefficient;
inflow to exchanges;
financing rate;
unrealized profits on the network.

As analysts found out, three indicators show negative dynamics at once: the number of active addresses, trade and social volumes.

Source: insights.santiment.net

Also, Santiment found out that the number of transactions entered on the exchanges began to grow. This means that ETH holders are trying to lock in profits amid the rally.

In the meantime, ether is approaching local resistance when looking at the Market Value to Realized Ratio (MVRV).

At the time of this writing, the coefficient is at the level of 19.3%. However, if the coefficient values ​​approach the 25% mark, the cryptocurrency will be in the correction zone. At the same time, Santiment acknowledged that the growth of ETH may continue after 25%, but risks will grow along with the price.

Moreover, the funding rate may also indicate a potential reversal. Despite the renewed all-time highs, the rate of funding perpetual contracts on the BitMEX exchange is at the bottom.

According to Santiment, the absence The spike in longs against the background of the ETH price high signals a lack of optimism in the derivatives market. The price of ETH in the ETH / USDT trading pair at the time of writing is $ 2748.

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