Ethereum's soaring social media activity has reached alarming levels that typically precede market pullbacks, according to blockchain analytics firm Santiment. The cryptocurrency's 51% monthly surge now faces growing risks as traders exhibit what analysts describe as "extreme euphoria."

Warning Signs in Social Metrics

Santiment's Friday report reveals Ethereum's social dominance metrics have entered danger territory following its 70% rally against Bitcoin since May. The platform notes such spikes historically correlate with overvaluation, suggesting ETH's current $3,750 price might not hold. 【Data shows】 social mentions for Ethereum now account for 42% of all crypto discussions—a level last seen before major corrections.

Contradictory Market Signals

Interestingly, the absence of memecoin mania presents a conflicting signal. "True market tops usually see rampant speculation across all assets," Santiment observes, noting the current environment lacks this hallmark of irrational exuberance. This anomaly leaves analysts divided—while social metrics scream caution, other indicators hint at continued upside potential.

Institutional Demand as Counterbalance

Corporate treasury movements could provide crucial support; Sharplink Gaming and Bitmine Immersion Technologies recently made substantial ETH purchases. Galaxy Digital's Michael Novogratz reinforced this narrative Thursday, predicting Ethereum may "outperform Bitcoin in coming months" due to constrained supply.

Historical Precedents

The current scenario mirrors Bitcoin's position last week when its social dominance spike preceded a 12% pullback. Santiment had similarly warned that BTC's record-high mentions—accounting for 49% of crypto conversations—often mark local tops. Ethereum now shows identical warning signs, though with stronger fundamental drivers.

——Market veterans recall how such sentiment extremes preceded both Ethereum's 2018 crash and 2021 correction—— Yet with institutional adoption accelerating, this cycle might defy historical patterns. As of press time, ETH maintains its upward trajectory despite the ominous social metrics.