Ethereum is being 'abandoned' by investors.
When Bitcoin dropped below $60,000, Ethereum and many altcoins also faced strong selling pressure.
According to on-chain analysis platform Santiment, interest in ETH has fallen to its lowest level this year, while social sentiment has plunged into extreme fear.
The reason stems from Ethereum continuously underperforming compared to Bitcoin and many altcoins, along with controversies surrounding the governance of the Ethereum Foundation and recent statements from Vitalik Buterin.
Notably, only about 11% of the ETH supply is currently in profit, the lowest since 2017. This indicates that a large portion of investors are holding Ethereum below their cost basis.
Extreme FUD could pave the way for a bounce.
Santiment believes that the near-total abandonment of Ethereum by investors could reduce the risk of another major sell-off wave.
The platform notes:
"Investors have nearly given up on Ethereum. Thus, ETH might not face significant new selling pressure. Prices will find it easier to rise if positive news and new demand emerge."
Santiment compares the current situation to April 2025, when forecasts of Ethereum's 'death' were widespread. About four months later, ETH was reportedly up three times and hit a new peak.
However, extreme negative sentiment is merely a favorable condition for a bounce, not a guarantee that prices will reverse immediately.
Cardano is showing unusual movement.
Santiment also notes significant activity from large Cardano wallets that haven't traded for a long time.
The Age Consumed index has surged, while the Mean Dollar Invested Age has slowed or decreased, indicating that older ADA coins are starting to move.
Historically, this combination has appeared around significant trend reversals.
Santiment emphasizes:
"These signals do not automatically mean a reversal is imminent, but they indicate that something is changing beneath the surface."
So, ETH and ADA are both showing signals worth monitoring, but the market still needs more cash flow and price confirmation data before we can say the downtrend has ended.