crypto analytics firm centiment, the leading smart contract platform for crypto traders Ethereum (ETH) warned about. According to the firm, ETH is giving ‘red flag signals’ on the chain!
Santiment Insights The company that published the report stated that while Ethereum continues to rise, its trading volume has been on a downward trend since September.
“There is a very strong disparity between price and trading volume. The price is going up, the trade is trying to go up but it fails and keeps going down.”
Santiment added that the on-chain volume, or number of active addresses, also fell by over 17%, from 675,500 on October 30 to 555,020 now.
Publishing data on the ‘social volume’ of Ethereum, Santiment stated that the social volume of ETH has increased, proving that market participants are still ‘optimistic’ about the ETH rally.
The company also uses network profit/loss measurement (NPL), which measures the total return on investment per day in all network operations; He noted that a large drop in NPL shows ETH holders selling at a loss on average.
According to Santiment, these on-chain signals are ‘worrying’ and the firm says its smart contract platform is on a ‘downtrend’ overall.
“Long-term breakups give us insight into going down. We see that network activity is decreasing despite the price going up. People are too relaxed to make a profit even if ETH rises. In this case, the probability of being punished is very high.”
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