Ahmet Bedirhan Arvas 
Crypto investors have been eagerly watching the Ethereum (ETH) rally for a while now. The rapid price increase of over 50% in the past 30 days has sparked record levels of activity on social media. However, analytics platform Santiment warns that these high social dominance signals could indicate a potential price correction in the short term.
What Is Social Dominance?
According to Santiment, when a crypto asset takes up an excessive share of social media mentions—an explosion in social dominance—it typically reflects that investors are in a state of high “euphoria”. The analytics platform notes that the ETH/BTC ratio has surged nearly 70% since early May, accompanied by this unusual rise in social dominance levels. Such crowded buying activity may be seen as a red flag.
How Should the Market Be Evaluated?
| Indicator | What It Tells Us |
|---|---|
| Social dominance & volume | The risk of a pullback increases during excessive euphoria. |
| Memecoin dominance | Still low — the market hasn’t peaked yet, room for rally remains. |
| Institutional transaction volume | May signal top-level appetite; long-term demand pressure is rising. |
| ETH/BTC price ratio | Sideways movement or signs of decline observed over the past 60 hours. |
| Fear & Greed Index | Extreme “greed” indicator surged to 95/100 for ETH. |
Historically, when ETH’s social dominance peaked, price corrections often followed. According to Santiment, this indicates that the majority has entered a phase of speculative excitement, and the buyer pool is narrowing — in other words, the ability to sustain upward price movement with new entrants is diminishing. Nevertheless, memecoin social dominance remains at low levels. Santiment notes that true market tops are often marked by widespread speculative hype around meme coins. The absence of such activity for now could hint that the ETH rally is not yet over.
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Institutional interest is also growing. Companies like SharpLink Gaming and Bitmine Immersion have been buying ETH, and according to Santiment analyst Maksim Balashevich, this institutional movement could become a new driving force for ETH. This growing narrative of “corporate treasuries adopting ETH” may push the asset to outperform Bitcoin. Galaxy Digital CEO Michael Novogratz also predicted that ETH could surpass Bitcoin in the next three to six months.
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Be cautious in the short term: Investors may react quickly to extreme social sentiment. Measures like stop-losses, profit-taking, or downsizing positions could be considered.
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Monitor June–July correction patterns: A potential 5–6% drop in the ETH/BTC ratio could resemble the local top observed in mid-May.
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Institutional staying power: Continued buying from institutions could offer long-term support for Ethereum through underlying demand.
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Upcoming chain upgrades: Planned protocol upgrades on Ethereum (such as proto‑danksharding and staking improvements) may push the price upward. However, whether these developments deliver their expected benefits remains to be seen.
Ethereum Faces Challenges at Key Resistance Zone
Ethereum has repeatedly tested a key resistance level in recent days but has yet to break through. While multiple rejections from this zone have been observed, breaking it this week is still among the possible scenarios. If the resistance is overcome, the price could gain momentum towards the $3,800–$3,900 range.
Eyes on Friday’s Interest Rate Decision
On the other hand, another major development the markets are focusing on this week is the interest rate decision to be announced on Friday. If an unexpected rate cut occurs, contrary to expectations, it could have a positive impact on the crypto market. In such a scenario, Ethereum may show strong upward momentum toward the $4,000 level.
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