Crypto analytics firm Santiment is taking a close look at leading smart contract platform Ethereum (ETH) ahead of the project’s upcoming shift from a Proof-of-Work (PoW) to a Proof-of-Stake (PoS) consensus mechanism.
According to a new post by the data aggregator highlights social media chatter ahead of the mid-September transition to ETH 2.0 as a key indicator of how the crypto-asset is likely to move ahead of the upgrade.
“With the latest Ethereum testnet merge on Thursday, prices briefly jumped above $1,900. The developers confirmed that the much-anticipated ETH upgrade will happen on September 15 or 16.
Social volume will dictate price volatility leading up to the event.”
Source: Mood/Twitter
Santiment next examined both Ethereum and the entire altcoin field, noting that despite a market-wide rally over the past month, traders are not behaving with enough enthusiasm to risk a flash crash.
“Ethereum’s 80% price surge has attracted the most attention of any asset over the past 30 days, but altcoins in general have been in a great place since late June. There is also no great euphoria, which is a sign that things can continue.”
Source: Mood/Twitter
Dig deeper into the charts, Santiment power two observations on Ethereum that suggest ETH remains on a bullish path.
“Ethereum surged back above $1,880 after a positive CPI report on Wednesday.
This two-month price high was accompanied by a large influx of ETH transactions worth $100,000 or more. This is happening along with the accumulation of whale addresses.”
Source: Mood/Twitter
Earlier in the week, the analytics company called attention to the Ethereum network, which hit an annual milestone by averaging more than 546,000 daily active addresses over the past month, just as its price surpassed $1,800 for the first time in 60 days.
“Ethereum surged above $1,800 today for the first time in two months. Fueled by a steadily increasing rate of unique addresses interacting with the ETH network, further recovery will depend on BTC remaining relatively stable and trading FOMO being moderated.”
Source: Mood/Twitter
Ethereum continues to recover from its mid-week surge, up another 4.30% in the past 24 hours to trade at $1,963.
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Featured image: Shutterstock/Tithi Luadthong