The sentiment index for the second-largest cryptocurrency by market capitalization has dropped to its lowest point in a year, indicating a potential market reversal as the overall market stabilizes, according to Santiment.
? Ethereum sentiment has declined to year-low levels as the asset has underperformed relative to other top caps. For those patiently holding their $ETH, the bearishness being projected across social media is a good sign of a potential turnaround once crypto markets stabilize. pic.twitter.com/iRaKTvb0Tu
— Santiment (@santimentfeed) March 6, 2025
The illustration shows that from March to September 2024, amid a broader bull run, sentiment towards Ethereum remained predominantly bullish. After September, traders turned more bearish, and this trend has persisted into the new year.
In a conversation with Cointelegraph, Douro Labs CEO Mike Cahill highlighted Ethereum’s appeal, suggesting it will benefit from market stabilization and renewed liquidity and institutional interest.
Dominic John from Kronos Research cited factors such as the Federal Reserve’s rate cuts and the addition of staking options in ETFs as potential growth drivers. Woo X co-founder Jack Tan mentioned the inclusion of the asset in a strategic crypto reserve.
Over the past 30 days, Ethereum’s market capitalization has fallen by 21.5%, and by 42.2% over the year.
CryptoQuant CEO Ki Young Ju wryly noted that the second-largest cryptocurrency behaves like a stablecoin, maintaining its value over the past four years.
“$ETH is a stablecoin,” says CryptoQuant’s CEO, pointing to Ethereum’s consistent price of $3,160 since 2021.#ETH #CRYPTO pic.twitter.com/5iSY3anuQr
— EHL?? (@i_amehl) January 14, 2025
Previously, CryptoQuant highlighted that the MVRV metric had reached a zone of strong undervaluation, falling below 1.
CryptoRank noted the impact of controversies in EF on the price of the second-largest cryptocurrency.
Earlier, Fidelity experts described Solana as a “serious competitor” to Ethereum. A similar opinion was expressed by JPMorgan.