April 19, 2024
Altcoins News

Trump’s Ethereum Holdings Spark Social Frenzy: Impact on Market Sentiment and Bearish Trends

The possession of Ethereum [ETH] by former U.S. President Donald Trump has ignited a wave of enthusiasm within the cryptocurrency realm. This development reportedly triggered a notable surge in social activity linked to Ethereum over the past 24 hours.

While Trump’s legal issues have been prominent in the news, the attention has shifted to his involvement in the crypto sphere. Recent reports have disclosed that Trump is the owner of a cryptocurrency address containing Ethereum valued at more than $2.8 million.

The market responded with considerable excitement in the past day, as evidenced by the substantial increase in social interactions. The discussions and enthusiasm surrounding the ex-President’s cryptocurrency portfolio resulted in a remarkable uptick of up to 5.6 million interactions per hour. In simpler terms, there was a substantial amount of online conversation and excitement concerning the cryptocurrency holdings of the former President.

This surge in social engagement became evident through Ethereum’s prominence on social media, which temporarily surged to its highest monthly level within the last 24 hours.

Although there was also a notable rise in trading volume over the last four days, this did not translate into a bullish demand. Interestingly, Ethereum’s price action exhibited a bearish trend during the same period, implying that the increased trading volume was primarily due to selling pressure.

Could Trump’s involvement lead to a bullish market reversal?

The surge in social dominance indicated that Ethereum gained significantly more visibility over the past day. However, the cryptocurrency’s value experienced a decline during the same timeframe, suggesting that the excitement surrounding Trump’s cryptocurrency holdings might not have wielded a substantial influence on overall market sentiment.

In recent days, bears within the Ethereum market have exerted significant control, resulting in ample selling pressure that pushed the price below a long-standing ascending support level. As of the current moment, Ethereum was valued at $1,808.

The Relative Strength Index (RSI) of Ethereum dropped below its midpoint, reflecting a market favoring bearish tendencies. This prompts consideration of whether Ethereum is poised for further decline or if a buildup of accumulation is occurring, potentially leading to a bullish pivot in the coming days.

Over the last four weeks, the amount of Ethereum held by major addresses has been steadily increasing, marking a positive trend of accumulation by significant holders. This accumulation by large stakeholders is often perceived as a positive indicator. However, the recent downward trajectory of Ethereum’s value has implications for profitability, as highlighted by the Market Value to Realized Value (MVRV) ratio. This ratio is currently near its lowest point within the last four weeks.

Image by Gerd Altmann from Pixabay

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