Ethereum (ETH) has plunged more than 40 percent this week, after hovering below $100 on the day that is now called the Black Thursday in the crypto market. However, ETH has marginally bounced back to trade between $120-130.
In 2017, both Ethereum and Bitcoin saw a significant rise in prices and the number of tweets refereeing to ETH. During that year, the number of tweets reached an average of 12,622 daily. However, the total number of tweets rose to 15,029 in 2018, when ETH generated a return of -78.6 percent, which was the lowest over the years.
Meanwhile, these annual averages slightly declined to 4,621 daily tweets in 2019.
Impact of Tweets on ETH
When examining the relationship between the daily volume of ETH and the total number of tweets referring to it in 2017, we will find a significant relationship between them. If the number of tweets rose by 1 percent, the ETH volume will increase in the same day by 1.612 percent.
Tweets not impacting returns
The main purpose of this relationship is to identify how the number of tweets can directly impact potential returns. In the years of coverage, we could not consider any important correlations between the variables.
Despite the relationship between the number of tweets and the rise in ETH price, the number of tweets is expected not to have any impact on ETH returns this year.
ETH may rank among top performers
ETH may rank among top performers in 2020, traders expected, stipulating that the current upsurge transforms into a full-blown run.
Crypto trader Satoshi Flipper said it usually suggests a positive short to medium-term pattern when the amount of a crypto-asset is on the rise in tandem with price.
“Ethereum volume, spot & derivatives, is looking really splendid.”
Technical analysts expected that ETH would outperform the other cryptocurrencies over the next period.