Ethereum, on the brink of collapsing below $2,000... Negative comments explode, exhausting investor patience

▲ Ethereum (ETH), cryptocurrency decline/AI generated image

With Ethereum (ETH) trapped below a major resistance level, investor sentiment has deteriorated sharply in recent weeks. According to Santiment data, Ethereum has been hit not only in terms of market value but also in 'patient holders,' and social investor sentiment has significantly collapsed as the price failed to recover key levels.

NewsBTC reported on May 23 (local time) that Ethereum traded between $2,200 and $2,400 since early April and fell by 11.5% after another failed breakout attempt earlier this month. The outlet also stated that Ethereum is at risk of falling below $2,000 for the first time since March.

Santiment noted that Ethereum's social dominance continued to rise even amid price declines. While an increase in social dominance can generally be interpreted as a positive sign during strong upward momentum, this time, relevant discussions surged during Ethereum's price decline after a short-term peak on April 17. Santiment explained, "This is a phenomenon often seen when traders become emotionally attached to a particular asset for negative rather than optimistic reasons."

The ratio of bullish to bearish comments on Ethereum has also significantly worsened since April. A relatively healthy ratio of approximately 2-to-1, where bullish comments outnumbered bearish ones, has collapsed to roughly 1-to-1. Santiment analyzed that a significant portion of positive views has disappeared, and negative views now match positive ones.

Factors contributing to negative sentiment include sluggish prices, concerns about outflows from Ethereum spot ETFs, reports of personnel departures from the Ethereum Foundation, distancing by key supporters, and suspicions of major figures reducing or liquidating their holdings. Competition with faster-growing ecosystems was also cited as a burden. NewsBTC reported that individual investors are more sensitive to short-term price increases than to the developer base.

On-chain activity also appears to have weakened compared to previous Ethereum rallies. The number of new wallets interacting with the network has decreased, and overall participation has cooled alongside slowing price momentum. However, Santiment assessed that an excessively bearish sentiment towards Ethereum could be constructive from a contrarian perspective. It explained that periods where social discourse is overwhelmingly negative often form near major turning points in terms of behavioral psychology.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*