• Ethereum’s current decline signaled a cooling-off from its recent highs.
• Derivative data pointed to continued market interest.

Ethereum [ETH] seems to have come off its ETF hype-induced rally as bulls have started to take a hike.

At press time, the largest altcoin in the world has seen a decrease of 3.7% over the past day and 2.5% over the past week as the market awaits the approval of the S-1 forms for the ETFs. So, is the rally over already?

AMBCrypto’s analysis of TradingView saw that Ethereum has been unable to maintain its highs and is now consolidating at lower levels.

The Moving Averages (MA50 in blue and MA200 in red) indicated a cooling-off period.

Initially, the price surged above both moving averages in a strong bullish move but has since declined and is now trading below these key indicators, as we see a shift to bearish momentum in the short term. 

The RSI, sitting around 45, also indicated a lack of strong buying momentum, with values leaning more toward the oversold territory, but not conclusively so.

Ethereum’s social volume has also declined significantly, suggesting that public interest in and sentiment toward the altcoin are low. 

This reduction in social engagement could be contributing to the decrease in Ethereum’s price, as less discussion might correlate with reduced trading activity and demand.

Interestingly, the trading volume of Ethereum’s derivatives market has sharply increased by over 70%, meaning there is heightened market engagement.

Notably, the long/short ratio across different platforms also shows more bullish sentiment on platforms like Binance [BNB] and OKX.

What Ethereum’s future holds

The on-chain data for Ethereum presented a predominantly bullish scenario. 89% of holders are currently making money at the present price, indicating a strong upward trend that has benefited the majority. 

Read Ethereum’s [ETH] Price Prediction 2024-25

The significant concentration of the token by large holders (51%) suggested that while there was potential for high volatility due to possible large-scale sell-offs, the market was stable, with these major holders likely maintaining their positions.

Overall, Ethereum bulls seem to be cooling off temporarily, likely due to the latest US jobs data. But the rally is not over yet.