AKS
Key Takeaways
- Ethereum sentiment has deteriorated sharply amid price weakness.
- Bearish pressure intensified after Bankless founders Ryan Sean Adams and David Hoffman disclosed they had sold their remaining ETH holdings.
- Despite negative sentiment, Ethereum bulls argue the asset may be undervalued.
Fears of further decline in Ethereum’s price are surging this week amid worsening market sentiment, prominent departures from the ecosystem, and growing criticism.
At the time of reporting, Ethereum is trading at around $2,128, down 57% from its August all-time high and up over 10% in the last 30 days.
Ethereum Price Weak, Sentiment Turns Negative
Analytics platform Santiment said social sentiment surrounding Ethereum had deteriorated rapidly throughout May as traders reacted to falling prices and mounting negative headlines.
“Instead of excitement about new highs, the conversation shifted toward frustration, disappointment, and fear of further downside,” Santiment wrote in a market report.
The firm said Ethereum’s market capitalization had declined 11.6% over the past 15 days, while bullish-to-bearish social media commentary ratios had steadily collapsed toward parity as optimism faded.
Santiment said Ethereum’s worsening sentiment appeared to stem from “several negative narratives piling up simultaneously over a relatively short period of time.”
These included poor price performance, ETF outflows, and concerns over leadership instability within the ecosystem.
Bankless Founders Announce ETH Sale
Bearish sentiment intensified after Bankless co-founders Ryan Sean Adams and David Hoffman announced they had sold the remainder of their Ether holdings.
“Time to say something out loud,” Adams wrote on X.
“The first era of Bankless has concluded. A six year collaboration between David and myself exploring crypto, defi, and maximizing Ethereum.”
Adams said he would take a reduced role in the media platform’s day-to-day direction while continuing to appear on weekly podcasts.
“For my part, I’m still bullish ETH. And bullish Bankless,” he added.
Nonetheless, Santiment said rumors surrounding leading Ethereum figures exiting ETH positions had “reinforced the growing feeling that many longtime ETH supporters were losing conviction.”
At the same time, Ethereum has faced growing scrutiny following the departure of several Ethereum Foundation researchers and contributors in recent weeks, sparking concern over its strategic direction.
Ethereum Price Remains Fragile
Axel Rudolph, senior technical analyst at IG, said Ethereum was attempting to stabilize near a major support zone despite the recent wave of negative headlines.
“Ethereum has been trading within a wide channel since February and currently tests its lower uptrend channel line which offered support at $2,078.58,” Rudolph wrote in a market note.
Rudolph said a sustained hold above that level could trigger a rebound toward the $2,220 and $2,300 regions.
However, he warned that “while Ether remains below its 14 May high at $2,318.18, downside pressure will retain its upper hand.”
He added that a break below this week’s lows could leave Ethereum vulnerable to a deeper decline toward the March support zone between $1,900 and $2,000.
Ethereum Bulls Point to Strong Network Activity
Despite worsening market sentiment and recent price weakness, some Ethereum bulls argue the crypto may be significantly undervalued relative to its underlying network activity.
Staking provider Everstake said recent blockchain data challenged the recurring narrative that “Ethereum is dead,” pointing to record transaction volumes and rising network participation.
On April 28, Ethereum processed 3.63 million daily transactions, the highest level in the network’s history, according to Everstake.
“Just pause and think about the sheer magnitude of this scale,” the firm wrote in a post on X.
Based on current growth trends, Everstake said Ethereum’s daily transaction count could approach or exceed 6 million by the end of 2026, potentially cementing its dominance as the leading smart contract blockchain.
Ethereum also continues to dominate major segments of the digital asset economy, including decentralized finance and stablecoin infrastructure, accounting for roughly 52% to 54% of total supply, according to market data.
“The fundamentals-price divergence raises the question of whether it’s time to buy or if on-chain signals are currently overrated,” BSCN said.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
