ETH Miners Start Selling Their Holdings As Sentiment Turns Bearish

ETH miners start selling their holdings as the sentiment turned quite bearish on Twitter so can we expect an incoming correction? Let’s find out in today’s ethereum news.

The recent data revealed that ETH miners start selling significant ETH holdings after the latest price jump to $420. The Twitter sentiment turned bearish for the cryptocurrency after the price drop. Ethereum miners which are the lifeblood for the algorithm behind the Ethereum blockchain, have gained the most from the ongoing decentralized finance craze. They made a total of $166 million in fees in September which is a new monthly all-time high and about six times more than Bitcoin miners.

As far as the balances go, they started accumulating bigger portions at the start of September as the graphs show. Apart from slight drops in holdings, the trend continued for a few days. However, the price of the second-biggest cryptocurrency surged to a 7-week high of $420 as miners started changing their minds. The data analytics company Santiment outlined the massive drop for the ETH miner holdings. The sell-off coincided with Ethereum’s price peak but the second-largest digital asset by market cap which lost some steam and trades now below $400.

Despite being one of the best-performing assets since 2020 started, Santiment’s data suggested that ETH could be heading further south. Apart from miners depositing their ETH coins, the analytics companies say that the traders’ FOMO and the increased on-chain data activity that is visible recently, slowed down. The Twitter sentiment turned against Ethereum which was expected but the sentiment performs in correspondence with the price most of the time. When ETH dipped to about $300 the metric remained in negative territory for a few weeks consecutively.

On the contrary, when ETH started pumping, the sentiment pumped as well. Now the trend reversed after a sharp spike but the analytics company concluded that since the sentiment flipped into bearish territory, the ETH token could be in for a few short-term price drops as well. As reported earlier, Ethereum is facing huge price movements as it is winding up for another shot of breaking the $420 level. The positive fundamentals for Ethereum are supporting the bulls in the near-term.