While Ether sentiment flips bullish, Santiment warns that excessive optimism could signal a near-term correction as wider crypto markets remain in “Extreme Fear.”
Ethereum Sentiment Surges Amid Market Downturn
Ethereum (ETH) traders are showing renewed optimism after the token’s recent rebound toward $3,500, even as broader market sentiment remains deeply negative, according to on-chain analytics firm Santiment.
In an X post on Thursday, Santiment reported that bullish comments about Ether now outnumber bearish ones by 2.7 to 1, marking the most positive sentiment shift since July 2024.
At the time of writing, ETH traded around $3,323, having fluctuated between $3,251 and $3,451 over the past 24 hours, according to CoinGecko data.
Analysts Warn Against Overconfidence
Despite the surge in enthusiasm, Santiment cautioned that crowd euphoria often precedes short-term pullbacks.
Earlier in the week, when ETH traded near $3,700, bearish sentiment peaked, with only 0.86 bullish comments per bearish one—a dynamic that historically precedes rallies.
“Historically, we want to see continued FUD like Ether was having on Tuesday,” Santiment explained. “A sell-off helped fuel the rally, but excessive FOMO could now stall it.”
The firm added that when traders’ expectations of a rapid return to $4,000 cool off, that may present the next “true buy signal.”
Crypto Market Still Gripped by Fear
While Ether traders are showing renewed confidence, the broader crypto market remains fearful amid persistent macroeconomic uncertainty.
The Crypto Fear & Greed Index posted a reading of 24 out of 100 on Friday, marking “Extreme Fear”, after dropping to 21 earlier this week—its lowest level in nearly seven months.
Analysts attribute the downturn to U.S.-China trade tensions and broader market headwinds, which have pressured both Bitcoin (BTC) and altcoin prices.
Bitcoin briefly fell below $106,000 earlier this week before recovering to $102,298 at the time of publication, according to BITXjournal.
Despite the market anxiety, long-term crypto advocates remain confident.
Samson Mow, CEO of Jan3, reiterated on X that Bitcoin’s bull run hasn’t truly begun, calling the current correction a “healthy reset” before the next leg higher.
As Ethereum sentiment surges and traders eye a move above $3,500, Santiment’s data suggests that cooling short-term enthusiasm may be key to setting the stage for sustained growth ahead.
For now, Ethereum’s optimism stands in sharp contrast to a fearful market — a divergence that may soon determine its next major move.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.