Retail Cancels Ethereum, Making Recovery More Likely: Santiment

Retail traders have written off Ethereum as it falls to bear market lows, but there could be a positive outcome.

The “crowd has written off Ethereum,” Santiment reported on Tuesday. However, this makes the likelihood of a rebound “substantially higher,” he added.

The onchain analytics platform said Ethereum social sentiment has fallen into an “extreme fear zone” as traders react to months of underperformance relative to Bitcoin and many other altcoins.

The recent sell-off has been amplified by the ongoing debate surrounding the Ethereum Foundation, criticism of its leadership and priorities, and controversial comments from Vitalik Buterin that have “fueled further uncertainty.”

Is a rebound likely?

Positive to negative comments have fallen to one of their lowest levels of the year, indicating that bearish narratives now dominate social media, Santiment said.

The same situation developed when ETH prices fell to similar prices in April 2025. FUD reached record levels and everyone shouted: “Ethereum is dead.”

Four months later, its price had tripled to reach an all-time high.

“Historically, Ethereum has tended to rally when social sentiment reaches extreme levels of FUD because prices frequently move against crowd expectations.”

By the time traders become overwhelmingly convinced that an asset will continue to fall, much of the selling pressure has already been exhausted, he added.

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✍️ TL;DR: The crowd has canceled Ethereum, substantially increasing the likelihood of a bounce
📊 Metrics used: ratio of positive to negative comments
🔗 Link: https://t.co/vCjlfHHuGE

📉 Ethereum social sentiment has fallen into an extreme “fear zone” as traders react to… pic.twitter.com/XHAf2KglbR

— Santiment Intelligence (@SantimentData) June 9, 2026

According to Glassnode, the proportion of ETH supply held at more than 3x earnings has fallen to just 11%, its lowest level since 2017. Ether’s profitability profile has “fundamentally compressed” relative to previous cycles, aggregate.

To balance the supply of Bitcoin, the loss has reached a new yearly high of 50%, so the bear market is hitting all crypto assets.

ETH Price Outlook

Ether price continues to weaken in the near term, hitting an intraday low of $1,620 twice in the last 24 hours.

With no current drivers or momentum, a drop towards $1,500 seems very likely. This level serves as an important support zone, as it did 14 months ago, when Ether was going through the same pain.