Ethereum Sentiment Hits Extreme Fear Zone: Is a Rebound Looming?

The onchain analytics platform Santiment has reported that Ethereum's social sentiment has fallen into an 'extreme fear zone'.

This is due to months of underperformance relative to Bitcoin and many other altcoins, as well as ongoing debate surrounding the Ethereum Foundation, criticism of its leadership and priorities, and controversial comments from Vitalik Buterin that have 'fueled further uncertainty.'

Historically, Ethereum has tended to rebound when social sentiment reaches extreme fear levels because prices frequently move opposite to the crowd's expectations.

The share of ETH supply held at more than 3x profit has dropped to just 11%, its lowest level since 2017, according to Glassnode.

Ether's profitability profile has 'fundamentally compressed' relative to prior cycles.