Ethereum sentiment has declined sharply since May. Traders are reacting to increased price pressure, ETF exits, Foundation withdrawals and slower growth of the network.
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- Santiment reports that Ethereum’s total market value fell 11,6% in just 15 days, as the trader mood weakened.
- ETF withdrawals, Foundation departures and a slower growth of the network have all contributed to new Ethereum doubts.
- JPMorgan believes ETH’s network needs to be more active and its real world use increased in order for it to catch up with Bitcoin.
Santiment stated that Ethereum had seen a drastic shift in the market’s mood. Its market capital has fallen 11.6% within 15 days. The platform warned that ETH may now fall below $2,000, for the first since late March, if sales pressure persists.
Report said Ethereum’s dominance in social media grew while its price continued to fall. The pattern could indicate a greater level of attention. However, Santiment stated that the conversation shifted from optimism to fear.
Santiment said that bullish and negative comments regarding ETH also moved towards balance in May. By late April, the bullish remarks were far more than those of the bears. By May the ratio had moved close to one, indicating traders’ decreased confidence.
ETF withdrawals impact ETH demand
ETF flow is a major source of pressure. Santiment stated that many Ethereum ETF products experienced outflows throughout May. These included large withdrawals of funds associated with BlackRock. Santiment also reported that in the last three weeks, no Ethereum ETF daily inflows above $50m had been registered.
📉 Ethereum sentiment has flipped hard, and retail has jumped from crypto’s #2 market cap quickly. ETF outflows, Foundation exits, slowing network growth, and nonstop bearish narratives have traders questioning $ETH like never before. Here’s our take. 👇https://t.co/RDpVPbdIZs pic.twitter.com/y7JPlcZEPK
— Santiment Intelligence (@SantimentData) May 22, 2026
The $2,000 level is also a key area for traders. Market coverage earlier said Ethereum ETFs recorded More than $340 Million in Net Outflows Over Six Trading Sessions, While ETH Struggled to Recover $2,150.
JPMorgan Chase & Co. flagged Ethereum’s demand is weaker than Bitcoin. Bitcoin ETFs recovered around two-thirds recent outflows. Ether ETFs recovered just about a third. The bank also stated that ETH and other altcoins could continue to lag behind without stronger DeFi activities and real-world uses cases.
Foundations’ exits raise trader questions
Recent coverage of the Ethereum Foundation has also weakened mood. Recent coverage noted Carl Beek, Julian Ma and other Ethereum Foundation members have announced their departures.
Santiment stated that traders tend to react very quickly to narratives. The report said that public statements about ETH supporters reducing their exposure and reports on Foundation exits contributed to the current mood of bearishness. Certain of these claims were not backed up by context but still affected trader behaviour.
In addition, the report noted that Ethereum continues to be a leader in terms of development. Santiment reported that Ethereum continues to lead in the raw developer work even as retail investors focus on faster price changes from rival eco-systems.
Market test for network growth
Santiment noted that the growth of network and daily active address has slowed from 2024-2025. There are fewer new wallets that interact with Ethereum. This could be interpreted as a weaker demand.
According to market data from crypto.news, Ethereum traded between $2,125 and $2,135 as of May 22. This keeps ETH near the zone of support that traders are watching after recent outflows, and technical weakness.
Santiment “Whether ETH is actually approaching one of those moments remains uncertain,” Referring to the possibility that extreme bearishness could lead to a contrarian set-up. The market’s attention is on Ethereum, whether it can recover demand and defend the $2,000 range, as well as if the network can be used faster than the trader confidence falls.
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Source: crypto.news
