In the midst of an apparent resurgence of the crypto fever, data analysis firm Santiment shared its predictions for Ethereum. According to Santiments analysis and conclusions, Ethereum investors should proceed with caution. The data analysis firm highlights ETHs performance in recent months.

At the time of publication, ETH is trading at $395 with gains of 0.15% in the last 24 hours. In the weekly and monthly charts, ETH shows gains of 23.97% and 62.98% respectively.

Santiment said in a new report that the rise of ETHs price over the last 30 days was predictable. Several analysts have argued that ETH has a variety of reasons for a price boom. First, the hype around the launch of the Ethereum 2.0 mainnet and the start of the final testnet with the deployment of Medalla .

Additionally, the rise in the Total Value Locked on Ethereum DeFi sector. Santiment data shows that the so-called summer DeFi lead to an all-time high of $4.3 billion, as can be seen in the graph below. The majority of the investment has been made in the last two months, following the growth in investor interest in yield farming.

Source: https://app.santiment.net/assets/list?name=DeFi%20Summer@2046#shared

However, the analysis firm says that the rise in ETHs price is too exceptional. According to Santiment the MVRV (Maket Value to Realized Value) metric is at its highest point since February 2014 and the 90-day return is at its highest point since February 2018 with 45.93%. The high percentage in this metric indicates that there will be a correction in ETH price that will precede a possible rise driven by the reasons mentioned above:

Even though the price of $ETH has risen exponentially since its public market trading 5 years ago, the metric, just like for all assets, hovers around 0% due to non-optimal trading strategies, including FOMO and FUD. Often times, when average returns get this high, there will be a likely shake-out upcoming to remove the weak hands. ETH has plenty more upside from these prices, but short-term, things are beginning to look a bit too one-sided into the positive for investors.

Source: https://twitter.com/santimentfeed/status/1290322838470176769/photo/1

Santiment highlighted in a separate report the newcomer Ampleforth (AMPL) and the fast price development of the token. The analysis firm claims that the token has gained popularity and investor confidence, as can be seen in the graph below. Santiment describes investors perception of AMPL as extremely positive with the potential to continue that trend.

Source: https://insights.santiment.net/read/a-new-stablecoin%3A-swings-happen.-ampleforth-5934?utm_source=twitter&utm_medium=post&utm_campaign=twitter_a_new_stablecoin_ampleforth_article_garry_07_31_20

However, the analysis firm also warns of caution. Due to the experimental nature of the token, the Age Consumed indicator that measures confidence in the asset over a longer period of time is shown to be negative. Santiment concludes the following:

Volatility markers are in place. Whales accumulating, crowd is paying attention. There will be redistribution between both. Just the question at what price level. Signs are concerning and not advising anything financially.

Visit link:

Santiment: Ethereum might face correction DeFi token Ampleforth will rise - Crypto News Flash