Santiment Says Ethereum Bearish Sentiment Hit Extremes Three Times in a Month, Signaling Potential Dip-Buying Opportunity

On-chain analytics firm Santiment said the ratio of negative to positive comments on Ethereum across major communities including X, formerly Twitter, Reddit and Telegram reached extremely bearish levels three times over the past month.

In a post on X on July 24, Santiment said the trend may appear negative at first glance. But similar declines in investor sentiment have previously coincided with price weakness and created dip-buying opportunities. Following the prior two sharp drops in sentiment, Ethereum rebounded about 14% and 7%, respectively.

Santiment added that negative sentiment does not necessarily lead to an immediate price rebound. Still, if fundamentals such as ETF inflows, Layer 2 ecosystem activity and protocol upgrades remain intact, conditions could emerge for a recovery even as some market participants exit.