The sentiment towards Ethereum has been labeled as an 'extreme fear zone' by Santiment. The ongoing lag of Ethereum behind Bitcoin and other major crypto assets has put pressure on market participants' sentiments.
'The crowd has written off Ethereum, which significantly increases the likelihood of a price rebound,' stated investment experts.
Analysts reminded us that periods of maximum fear and uncertainty in the past often preceded asset growth.
An additional argument for a potential trend reversal is the MVRV Z-Score indicator, which reflects the ratio between the market value of the asset and the average purchase price of the coins. Currently, the indicator hovers around -0.7, which historically corresponds to an undervalued zone. According to Santiment, such values for Ether have only been seen at the end of 2018, mid-2022, and in June 2026.
Such changes have been observed shortly before a market trend reversal, although the indicator might remain in the negative zone for several months afterward, reported representatives from Santiment.
Earlier, analysts from the South Korean platform CryptoQuant reported that in the first week of June, reserves of Ether on major exchanges like Binance, OKX, Gemini, and Bitfinex decreased by 475,000 coins.