The recent surge in Ethereum’s price has led to a spike in social media mentions of the cryptocurrency. This indicator has reached a level of “extreme euphoria,” suggesting a risk of correction, experts at Santiment noted.
“Since the beginning of May, Ethereum’s price relative to Bitcoin has risen by an incredible 70%. This has led to a sharp increase in social media dominance, which is often a warning sign,” they pointed out.
Typically, high metric values indicate an overvaluation of the asset, added specialists from the analytics platform.
According to CoinGecko, the second-largest cryptocurrency by market capitalization is trading near $3750. Over the past 30 days, its price has increased by 53.5%.
However, other indicators suggest the Ethereum rally might continue, experts acknowledged. One sign is the low social media interest in meme coins. Historically, at the real market peak, investors shift to highly speculative coins, they explained.
A potential driver for Ethereum is the trend of forming corporate treasuries in ETH, according to Santiment.
“This narrative could support the final push to new highs,” analysts emphasized.
Regarding expected price targets that could precede a reversal, they identified $125,000 for Bitcoin and $4050 for Ethereum.
Earlier in mid-July, Santiment experts announced the start of altseason. The first cryptocurrency subsequently reached new highs at levels above $123,000.