Ethereum sentiment weakens sharply in May. Traders are reacting to price pressure, ETF outflows, Foundation exits, and slower network growth.
Santiment reported a sharp shift in market mood. ETH’s market cap dropped 11.6% over 15 days. The data platform warned that Ethereum could fall below $2,000 for the first time since late March if selling pressure continues.
Why Ethereum sentiment weakens despite high social dominance
Santiment noted that Ethereum’s social dominance rose while the price kept falling. That pattern usually points to higher attention. However, the tone of discussion moved toward fear and frustration instead of optimism.
Bullish and bearish comments about ETH moved closer to balance in May. In late April, bullish comments were still well above bearish ones. By May, the ratio approached 1.0. This shows that traders have become far less confident.
ETF outflows weigh on ETH demand
ETF flows are a major pressure point. Santiment said several Ethereum ETF products saw outflows through May, including large exits from BlackRock‑related funds. In addition, no total Ethereum ETF inflow day above $50 million has occurred in three weeks.
Earlier reports also showed why traders watch the $2,000 area. Ethereum ETFs recorded more than $340 million in net outflows over six trading sessions. Meanwhile, ETH struggled to reclaim $2,150.
JPMorgan also flagged weaker Ethereum demand compared to Bitcoin. The bank said Bitcoin ETFs recovered about two‑thirds of recent outflows, while Ether ETFs recovered only one‑third. Without stronger DeFi activity and real‑world use cases, ETH and altcoins may keep lagging.
Foundation exits add to trader doubts
Ethereum Foundation changes have also fed the weaker mood. Recently, Carl Beek and Julian Announced their exits from the Foundation, adding to broader Protocol Cluster changes.
Santiment noted that traders often react quickly to these narratives. Reports about Foundation exits and public claims of ETH supporters reducing exposure helped build the current bearish mood. Some of those claims lacked full context, but they still shaped trader behavior.
Nevertheless, Ethereum remains strong in development activity. Santiment said Ethereum still leads in raw developer work, even though retail traders focus more on faster price moves from rival ecosystems.
Network growth remains the market test
Santiment said daily active addresses and network growth have cooled from stronger periods in 2024 and 2025. Fewer new wallets are interacting with Ethereum. Traders may read this as a sign of weaker demand for ETH.
Ethereum traded near $2,125 to$ 2,135 on May 22, according to TradingView data. That keeps ETH close to the support zone watched by traders after recent outflows and technical weakness.
Santiment concluded: “Whether ETH is actually approaching one of those moments remains uncertain.” For now, the market focuses on whether Ethereum can restore demand, defend the $2,000 area, and prove that network use can recover faster than trader confidence is falling.
