Ether Sentiment Hits Yearly Low, But It Could Signal a Strong Rebound: Santiment

Ether’s (ETH) social sentiment has reached its lowest point of the year, with traders discussing the cryptocurrency more bearishly than other major digital assets. Despite this, the downturn in sentiment could signal that Ether is poised for a potential rebound, according to insights from Santiment, a leading blockchain data platform.

While the second-largest cryptocurrency by market capitalization has underperformed recently, falling over 20% in the past month, Santiment suggests that the bearish sentiment could actually be a sign of a market bottom and an upcoming turnaround, once the broader crypto markets stabilize.

Social Sentiment and Market Performance

Santiment’s social sentiment tracker, which monitors discussions about cryptocurrencies across social media platforms such as X, Reddit, and Telegram, has shown a marked shift toward bearish sentiment regarding Ether. This aligns with its price underperformance compared to other major cryptocurrencies. Currently, Ether is trading at around $2,176, down from $2,143 at the time of the report.

In contrast, Bitcoin (BTC), the largest cryptocurrency by market capitalization, has only fallen 10% over the last month, trading at approximately $88,000 per coin. This discrepancy in performance has led to increasing bearish sentiment toward Ether, with some traders growing frustrated by its stagnant price action.

A Silver Lining: Bearish Sentiment as a Sign of a Potential Rebound

Despite the negative sentiment, Mike Cahill, CEO of Douro Labs, which contributes to the decentralized data network Pyth Network, told Cointelegraph that it’s important to separate short-term narratives from long-term fundamentals. According to Cahill, while social sentiment may appear bleak for Ether, historically, extreme bearish sentiment has often coincided with market bottoms.

Cahill explained that price movements in the crypto market tend to lead social sentiment, not the other way around. This means that the current pessimism surrounding Ether may indicate that the price is nearing a low point, and a rebound could be on the horizon once market conditions stabilize. Cahill further emphasized that Ether is well-positioned to benefit from renewed liquidity and continued institutional interest when the market recovers.

Historical Sentiment Trends: From Bullish to Bearish

Santiment’s data also highlights the shifting sentiment toward Ether over the past year. From March to September 2024, social sentiment was predominantly bullish, driven by a broader crypto bull market. However, as the market cooled in late 2024 and early 2025, traders became more cautious, and bearish sentiment began to dominate, particularly after September.

Dominick John, an analyst at Kronos Research, pointed out that although Ether’s underperformance may discourage short-term traders, extreme negativity often signals the bottom of a market cycle, making it a prime opportunity for a significant rebound. John suggested that factors such as decreasing interest rates or clearer regulatory developments surrounding ETH staking within ETFs could provide the momentum for Ether’s recovery.

Institutional Interest and Ether’s Long-Term Outlook

Despite the current market conditions, Ether’s long-term outlook remains positive, buoyed by continued institutional interest. A notable example comes from World Liberty Financial (WLFI), a DeFi platform backed by the Trump family, which significantly increased its Ether holdings by $10 million over a single week. This move underscores growing institutional confidence in Ether, even amid short-term market challenges.

Additionally, Santiment’s tracker analyzes social media for emerging trends and mentions, allowing the platform to track shifts in market sentiment based on community engagement. While the overall mood has been bearish, Santiment suggests that the fluctuations in sentiment could be an early indication of a potential shift toward a more optimistic outlook as market conditions improve.

Network Activity and the MVRV Z-Score

Another factor contributing to Ether’s current struggles is weakened network activity and declining total value locked (TVL) in its decentralized finance (DeFi) ecosystem. These indicators have raised concerns among investors about Ether’s ongoing growth and potential. Additionally, the MVRV Z-Score — a key metric used to assess whether Ether is overvalued or undervalued — has dropped to its lowest level in 17 months.

Interestingly, the last time Ether’s MVRV Z-Score reached similar low levels was in October 2023, right before it rebounded by almost 160%. The metric also saw similar dips in December 2022 and March 2020, both of which preceded significant bull runs. This historical trend suggests that Ether’s current low MVRV Z-Score could be another signal that the market is nearing a turning point.

Conclusion

While Ether’s social sentiment has reached its lowest level of the year, this negative sentiment may actually be a positive sign for the cryptocurrency. Historical trends show that extreme bearish sentiment often precedes market rebounds, and with institutional interest continuing to grow, Ether is well-positioned for a potential recovery once the broader crypto market stabilizes.

The MVRV Z-Score and the increased interest from institutional players indicate that, despite short-term challenges, Ether could be on the brink of a significant rebound. As the crypto markets evolve, traders and investors will need to keep an eye on Ether’s fundamentals, network activity, and broader market conditions for the best opportunities to capitalize on its future growth.