Ethereum’s funding rate has remained positive despite recent declines. ETH’s trend has also remained bullish.
After the Ethereum [ETH] ETF’s spot approval declined, its weighted sentiment also declined. Despite this decline, other metrics suggest Ethereum could be poised for a positive streak once spot trading resumes.
Ethereum Sentiment and Social Volume Decline.
An analysis of Santiment’s sentiment chart showed a decline in Ethereum sentiment. The chart indicated that weighted sentiment spiked to over 6% on May 20 and 21.
It then briefly dipped to around 2% before spiking back above 6% on May 23. This increase coincided with news of the approval of the ETH spot ETF, reflecting increased conversation and sentiment during that period.
However, since this peak, the weighted sentiment has fallen and is now negative. At the time of writing, the weighted sentiment is around -0.4.
This indicates that negative sentiment now outweighs the positive sentiment Ethereum enjoyed a few weeks ago.
In addition, an analysis of social volume showed spikes corresponding to increases in weighted sentiment. The graph shows that social volume increased to 4,197 during these periods.
However, like weighted sentiment, it has since dropped significantly. At the time of writing, social volume was around 415.
Ethereum Trend of New Directions Continues
An analysis of the new address graph on Glassnode shows that new addresses are still coming in despite the weak sentiment. At the time of writing, the number of new addresses exceeds 105,000.
Although there were dips at the beginning of the month, an uptrend is now evident. This indicates that more addresses are being created even before ETH spot trading begins. The number of addresses could increase further once trading begins.
Ethereum Remains Positive on the Derivatives Side
An analysis of Ethereum currency-weighted funding rate on glass showed that it has remained positive despite recent declines.
The chart indicated that the funding rate hovered around 0.092% at the time of writing. This suggests that buyers are dominating the market and there is a strong belief in a future rise in Ethereum’s price.
ETH Sees Slight Increases
Ethereum was trading at around $3,690 after a 0.4% increase. AMBCrypto’s analysis of the price trend on the daily timeframe showed slight increases over the past two days.
These slight gains followed a drop of more than 3% on June 7th, which pushed Ethereum out of the $3,800 price range.
Ethereum Bidding is on the Rise
According to the latest data, 32.5 million ETH have been wagered on the network. Although the number of participants has increased, which can generally increase rewards, both the reward rate and the inflation rate for betting ETH have decreased.
The reward rate refers to the annual percentage return a user earns for betting ETH. It is essentially the interest a user earns for helping to protect the network.
The inflation rate, on the other hand, reflects how fast the total supply of ETH is increasing. New ETH are created as a reward for betting, and this contributes to inflation.
A decreasing reward rate means that a user will receive slightly less new ETH for each token wagered in the short term. However, a decreasing inflation rate indicates that the total supply of ETH is growing at a slower rate.
In the long run, this could be a positive sign for the value of ETH. If the demand for ETH remains strong while the supply grows more slowly, this could drive up the price of ETH.
By Leonardo Perez
