Key Takeaways:
- Analyst Lennaert Snyder says reclaiming $4,600 could push Ethereum toward $4,800, while $4,300 remains the “last line of defense.”
- ETH’s short-term trend hinges on trader reaction at $4,600 resistance or support levels near $4,430–$4,300.
- Low social dominance despite rising prices suggests the rally may have room to extend, as institutional demand drives momentum.
Crypto analyst Lennaert Snyder recently shared an analysis on Ethereum’s (ETH) price action to his 45K followers on X. Snyder offers insights on Ethereum’s (ETH) possible short-term price paths.
The broader crypto market is recovering and trading in green as the entire crypto market capitalization (cap) has increased by 1.29% in one day, going from $3.87 trillion to $4.92 trillion at the time of reporting. Moreover, Bitcoin (BTC) and ETH have increased by 2.43% and 0.71% during the last 24 hours.
ETH is currently trading around $4,600, and the analyst shared key insights around the mentioned level. According to Snyder, if ETH can reclaim the level of $4,600 or above, it could trigger a rally to $4,800,which is the high of the recent trading range. The red zone (rectangle box) on the chart depicts a pivot level where ETH has either gone up or down
However, Snyder also shared the support levels for ETH. According to the analyst, if ETH fails to break through or stabilize at the levels of $4,600, the next significant price point to watch would be at $4,430.
Further, Snyder mentions that this area could act as a potential “higher low”, implying that the price might bounce from there, supporting a bullish momentum.
Nonetheless, if the second-largest cryptocurrency can’t hold at that level, the price could potentially go down to $4,300, acting as the final support level, which the analyst calls the “last line of defense.”
In simple terms-
- Above $4,600 → bullish run toward $4,800
- Below $4,430 → caution, could test $4,300
- $4,300 is the must-hold level to keep the uptrend alive
Ethereum (ETH) is moving inside a narrowing tunnel, and it’s nearing the end where it will soon break out in one direction, depending on how traders react at key price levels.
Social Dominance Cooling Off for ETH
Social dominance for an asset is calculated by comparing its social volume to the aggregate social volume of the top 100 assets by market cap. A Social Dominance of 50% for an asset indicates that the number of messages/posts discussing this asset is equal to half of the number of messages/posts discussing the Top 100.
According to Santiment, from late June to early August, the ETH enjoyed a huge price rally, and the social dominance (red line) also moved upwards. It is common for retail investors to get excited and start talking about ETH whenever the price sees a massive rally.
However, the recent price hike has been driven by institutions and the Digital Asset Treasuries (DATs).
Notably, the social dominance reduced to 8.35% during the short-term correction. However, ETH bounced back, going from $4,300, the level marked on 26th August, to $4,500-$4,600 at the time of reporting, while the social media dominance remained low.
When social dominance is low and prices are high, it may indicate that the rally still has space to grow, as the larger audience hasn’t fully jumped in yet.
On the other hand, if dominance rises too quickly, it can be a top signal, indicating that the crowd is euphoric, which is frequently followed by a correction.
