Social sentiment over Ether has hit a new low for the year as the price underperforms that of other cryptocurrencies

This could signal that it’s ready to bounce back, according to Santiment.

Social sentiment over Ether (ETH) has hit a new low for the year as the price performance lags other cryptocurrencies but this could signal it’s ready to bounce back, according to blockchain data firm Santiment.

In its March 5 X post, Santiment said its social sentiment tracker has observed that traders are more bearish when discussing Ether on social media channels like X, Reddit and Telegram, compared to other major cryptocurrencies.

“For those patiently holding their Ether, the bearishness being projected across social media is a good sign of a potential turnaround once crypto markets stabilize,” said the firm.

The price of Ether ETHUSD is down more than 20% in the last month, according to CoinMarketCap, with the second-largest cryptocurrency changing hands at $2,176. In comparison, Bitcoin BTCUSD has slid around 10% over the last month, trading at around $88,000.

Speaking to Cointelegraph, Mike Cahill, CEO of Douro Labs, a key contributor to the decentralized data network, the Pyth Network, said while Ether’s underperformance might be leading to a decline in social sentiment, it’s crucial “to separate short-term narratives from long-term fundamentals.”

“Historically, extreme bearish sentiment has often coincided with market bottoms, as price movements tend to lead social sentiment — not the other way around,” he said.

From March to September last year, the sentiment was largely bullish toward Ether amid a broader crypto bull market, according to Santiment. After September, traders grew more bearish, a trend that has continued into the new year.

However, Dominick John, an analyst at Kronos Research, said that while Ether’s performance might be discouraging for short-term investors, there is a silver lining: extreme negativity often indicates the bottom of a cycle, and it could be “primed for a significant rebound.”

“Factors like decreasing interest rates or clear regulatory developments around staking ETH within ETFs could push it higher,” he said.

Trump family-backed World Liberty Financial (WLFI) DeFi platform significantly increased its Ether holdings by $10 million over a seven-day period.

Examining the top 10 words that saw the most significant increase in social media mentions compared to the previous two weeks, Santiment's tracker delves into crypto-specific social media channels such as X.