TLDR
- ETH feeling has reached an annual low according to Santiment, which can signal a potential market turning
- Ethereum is down over 20% over the past month and underperformed bitcoin that only dropped 10%
- Analysts suggest that extremely baisse -like feeling often coincides with market bottoms and can precede significant returns
- Trump Family-supported World Liberty Financial increased Ethereum Holdings by $ 10 million in one week
- ETH currently stands against resistance of $ 2220, with key support levels to $ 2,100 and $ 2,050
Ethereum, the second largest cryptocurrency after market cases, has experienced a period of price weakness and declining social feel. Information from the Blockchain analyst company Santiment shows that Trader feeling against ether has hit its lowest point of the year. This comes when ETH has dropped over 20% in value over the past month.
The price decline has been more serious than for Bitcoin. While ETH is shopping for about $ 2,176, BTC has only dropped about 10% within the same time frame. This difference in performance has contributed to the negative feeling about social media platforms.
Santiment traces discussions about Ethereum over various social channels including X (formerly Twitter), Reddit and Telegram. Their analysis reveals a transition from the haus -like feeling that was seen during last year’s Crypto Bull market to the current Baissian outlook that began after September.
Market experts suggest that this pessimism can actually be a positive signal. Santiment that was noted in a post on March 5 on X that “Bearishness projected over social media is a good sign of a potential turn when the crypto markets stabilize.”
🐻 The Ethereum feeling has reduced that years of low levels as access has underperformed relatively other top capsules. For those who patiently hold on to their $The Baissen projected over social media is a good sign of a potential turn when the crypto markets stabilize. pic.twitter.com/iraktvb0tu
– Santiment (@santimentfeed) March 6, 2025
Mike Cahill, CEO of Douro Labs, emphasized the importance of separating short -term market stories from long -term grounds. He told Cointelegraph that historically extremely baisse -like feeling has often marked market bottoms, as price movements tend to lead the feeling rather than following it.
Cahill remains optimistic about Ethereum’s prospects. He believes that if crypto markets find stability, “Ether is well positioned to take advantage of renewed liquidity and continued institutional interest.”
Growing institutional support
This view is shared by Dominick John, an analyst at Kronos Research. John points out that although Ethereum’s latest results can deter short -term investors, extreme negativity often signals the bottom of a market cycle.
Several factors can help trigger an ETH price recovery. These include decreasing interest rates or clearer regulatory development on knitting ETH within ETFs. John also noted the continued purchase of institutional actors as a positive sign.
An example of institutional interest comes from the World Liberty Financial (WLFI), a Defi platform supported by the Trump family. WLFI has reportedly increased its Ethereum holdings by $ 10 million over a seven-day period, which signals growing long-term confidence in access.
Technical indicators also provide a certain hope for ETH holders. Ethereum’s MVRV Z-score, which helps to assess whether the token is overvalued or undervalued, has dropped to its lowest level in 17 months. The last time this point hit similar lowness was in October 2023, just before ETH recovered by almost 160%.
Earlier dip in this metric in December 2022 and March 2020 also preceded bull runs. This historical pattern suggests that the current low score can be a precursor to a price recycling.
Some analysts point to structural issues that affect Ethereum’s performance. Jack Tan, co -founder of Woo X Crypto Exchange, attribute ETH’s struggles to weaken network activity and reduce the total value locked (TVL).
TAN explains that Ethereum’s lower warehouse-1 transaction volume compared to previous peaks has reduced the wealth. This weakens its deflationary effect. In addition, competition from high-performing warehouse-1 blockchains as a solar fragmented ecosystem.
The transition of activity to Layer-2 solutions has also reduced demand for ETH as a settlement layer. According to tan, Ethereum Previously, it was significantly favored by Defi -Boom, but this advantage has decreased.
When looking at short -term price measures, Ethereum recently tried to break over $ 2,320 resistance level but failed. The price has since retreated and now shops below $ 2220 and the 100 hour simple moving average.
Technical analysis shows that Ethics broke under a key rising channel with support to $ 2220. The price found one low at $ 2 103 and is now trying to recover. It has moved above $ 2,120 and $ 2,150 resistance levels but faces obstacles close to $ 2220.
If Ethereum can clear resistance levels $ 2220 and $ 2,320, it can start a decent increase. The next big resistance would be close to $ 2,420. Breaking over this can squeeze the price against $ 2500 or even $ 2550 in the short term.
But if Ethereum fails to clear the resistance at $ 2220, it can start another decline. The first support is close to $ 2,100, with great support of $ 2,050. A break below these levels can send the price to $ 2,000 or even $ 1,880 in the short term.
At the moment, ETH holders are looking at these important price levels, while analysts continue to discuss whether the extreme Baisse feeling marks a bottom or if more disadvantage is in the future.
