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Ethereum Sets For An Explosive Bull Run: What Factors Indicate This?

Ethereum is preparing to continue the “banquet” and renew the annual price highs in the current bull run. What factors could push Ethereum to new heights, and how long will the crypto asset triumph last?

Traders trust Ethereum

Ethereum’s jump to $400 last week was the catalyst for increased support for the token from investors and traders. Despite the price pullback back to $380, the crypto market is dominated by an optimistic mood to the price movement of Ethereum. In particular, this is evidenced by the dynamics of the Satniment indicator over the past two weeks.

Satniment is used to identify bullish or bearish sentiment among crypto market participants and is a line chart with deviations up or down from zero. To determine the “social mood” to Ethereum, we analyzed the activity of users on Twitter, their posts in their accounts, and comments about the token.

Today the Satniment indicator shows a deviation from the zero levels in the positive direction at +2.78. This indicator is a record for Ethereum and indicates the prevalence of stable bullish sentiment among crypto market participants. In particular, in their recent podcasts, leading traders have agreed that Ethereum may continue to rally towards the $500 mark shortly.

Ethereum also benefits from the increase in open interest in token options over the past six months. According to Deribit, Ethereum futures are up 1,150% and are valued at $350 million at the time of writing. This is another record in the Ethereum “piggy bank”, which confirms the confidence of investors in the profitability of the token.

DeFi fueling interest in Ethereum

A colossal impetus for the popularization of Ethereum was given by the success of DeFi and an extremely high increase in investment in applications that operate on the ETH blockchain. Within six months, investment in DeFi projects has grown by 762%: if in March DeFi was estimated at $656 million, in August the total value is about $5 billion.

It is also worth noting an increase in whale activity. Analysts have recorded an increase in large movements of Ethereum from OTC crypto addresses to leading trading platforms. It is likely that in this way large investors are preparing for the big game and expect the Ethereum price to continue moving along the ascending channel.