Ethereum Sentiment: A Reflection of Pre-Rally Conditions

As Ethereum's social media buzz dips to levels comparable to those prior to last year's substantial rally, analysts urge caution, suggesting that a significant surge isn't guaranteed.

Key Takeaways

Social media chatter regarding Ethereum has decreased, echoing the low levels seen before its previous rally.
Price movements historically tend to rise after periods of negative sentiment.
A recent mass liquidation in the crypto market resulted in significant losses and may have contributed to the current price dip.
Analysts are observing both fear metrics in the market and on-chain activity on Ethereum’s network, which shows increasing engagement.
Technical upgrades, including PeerDAS and improvements in staking, indicate positive developments for Ethereum’s future capacity.

Ethereum

Ethereum is currently experiencing a decline in public sentiment, resembling conditions before the 2025 rally. Although some analysts see this as a sign that prices may not drop significantly further, recent market events and ongoing developments in Ethereum's network raise questions about potential future movements. Experts emphasize the importance of monitoring market sentiment and technological upgrades.

Historical Sentiment Patterns

According to Brian Quinlivan, an analyst at Santiment, Ethereum's social media sentiment has diminished, now reflecting the low levels seen just before the substantial rally in 2025. He noted that the decline in discussions surrounding Ethereum could suggest that prices may not fall much further. Quinlivan pointed out that history often shows price increases following episodes of strong public skepticism.

On August 23, Ether reached a new all-time high of approximately $4,900, rebounding from an annual low of around $1,470 in April, according to data from CoinGecko. However, since that high, Ether has retracted about 36%, trading at $3,089 at the time of reporting.

Market Dynamics and Liquidity Impacts

Recent reports indicated that a mass liquidation on October 10 led to nearly $20 billion in losses throughout the crypto market, contributing to the current price decline. This liquidation affected numerous positions and was part of a broader risk-off sentiment among investors.

Crypto market fear indices have shown low levels, with one index recording a Fear score of 29 on a recent Sunday. Additionally, the Altcoin Season Index marked Bitcoin with a score of 34 out of 100, indicating a tendency for investments to flow towards Bitcoin rather than altcoins in the past 90 days. Traders are closely monitoring this combination of metrics for shifts in market sentiment.

ETHUSD now trading at $3,102. Chart: TradingView

Quinlivan also emphasized some positive on-chain signals. He observed that Ethereum's network activity is on the rise, and more users are getting involved in staking.

Upgrading Ethereum's Network

Vitalik Buterin has chimed in on the ongoing conversation surrounding Ethereum's technical enhancements. He mentioned in a recent X post that the introduction of PeerDAS with the Fusaka upgrade, along with zero-knowledge proofs and sharding, is expected to enhance Ethereum's throughput significantly. Buterin also noted the necessity of layer-2 networks like Base, Polygon, and Optimism, as many applications require faster transaction speeds than the main network can currently offer.

Reports indicate that Coinbase Asset Management’s president, Anthony Bassili, mentioned in November 2025 that investors typically view Bitcoin as their primary asset, followed by Ethereum when constructing a core portfolio. This perspective shows that many large investors regard Ether as the default second-largest market cap asset rather than a speculative investment. While this status may result in lower expectations for downside volatility compared to riskier assets, low sentiment can persist over prolonged periods, and even prominent rankings do not shield from volatility risks.

Featured image from Unsplash, chart from TradingView