Ethereum is facing mounting pressure as weakening retail sentiment, ETF outflows, Foundation leadership exits, and slower network growth continue weighing on market confidence.
According to analytics platform Santiment, Ethereum’s market capitalization has dropped 11.6% over the past 15 days, increasing fears that ETH could fall below the critical $2,000 support level for the first time since late March.
Ethereum Sentiment Turns Increasingly Bearish
Santiment said Ethereum’s social dominance has risen while the price continued declining. Normally, higher social attention can support momentum, but this time the conversation shifted heavily toward fear, frustration, and uncertainty instead of optimism.
The analytics firm also noted that bullish and bearish commentary surrounding ETH has moved much closer to balance during May. In late April, bullish sentiment still clearly dominated the discussion. Now, the ratio has nearly returned to neutral territory, showing that trader confidence has weakened sharply.
The sentiment shift highlights how quickly market psychology can change when prices struggle to regain momentum.
ETF Outflows Continue Hurting ETH Demand
One of the biggest pressure points for Ethereum remains weak ETF demand.
Santiment reported that several Ethereum ETF products recorded continued outflows throughout May, including large exits tied to BlackRock-related funds.
The firm also noted that Ethereum ETFs have failed to record a single inflow day above $50 million during the past three weeks.
Earlier market data showed Ethereum ETFs suffered more than $340 million in net outflows across six trading sessions while ETH repeatedly failed to reclaim the $2,150 resistance zone.
JPMorgan Warns Ethereum Is Falling Behind Bitcoin
JPMorgan has also raised concerns about Ethereum’s weakening position compared with Bitcoin.
According to the bank, Bitcoin ETFs recovered roughly two-thirds of recent outflows, while Ethereum ETFs only recovered about one-third. JPMorgan warned that ETH and other altcoins could continue lagging unless Ethereum shows stronger DeFi growth and real-world utility adoption.
The comments reflect growing concern that institutional demand is currently favoring Bitcoin over Ethereum during periods of market uncertainty.
Ethereum Foundation Changes Add More Uncertainty
Leadership changes inside the Ethereum ecosystem have also added pressure to trader sentiment.
Recent reports revealed that Carl Beek and Julian Ma exited the Ethereum Foundation as part of broader organizational adjustments inside the Protocol Cluster.
Santiment said traders often react strongly to these types of narratives, especially when combined with rumors about large ETH holders reducing exposure.
Although some claims circulating online lacked full context, the ongoing discussion still contributed to the broader bearish mood surrounding Ethereum.
Developer Activity Remains Strong
Despite the negative price action, Ethereum continues maintaining one major advantage over competing ecosystems: developer activity.
Santiment said Ethereum still leads the crypto industry in raw development work, even while traders increasingly focus on ecosystems delivering faster short-term price gains.
That ongoing developer strength remains one of the strongest long-term arguments supporting Ethereum’s broader ecosystem position.
Slower Network Growth Raises New Questions
At the same time, network growth indicators have started cooling.
Santiment reported that daily active addresses and new wallet activity have weakened compared with stronger periods seen during 2024 and early 2025.
Lower user activity may signal slowing demand for ETH, especially as traders closely monitor whether Ethereum can maintain enough network usage to support long-term valuation growth.
Ethereum traded near the $2,125 to $2,135 range on May 22, keeping the market dangerously close to the psychological $2,000 support zone.
Can Ethereum Recover From Current Weakness?
Santiment noted that extreme bearish sentiment can sometimes create contrarian buying opportunities. However, the platform said it remains unclear whether Ethereum has reached that stage yet.
For now, traders remain focused on three major questions:
- Can Ethereum defend the $2,000 support zone?
- Will ETF flows stabilize and return positive?
- Can network activity recover faster than investor confidence declines?
Until those conditions improve, Ethereum may continue facing pressure as the broader market rotates toward stronger-performing assets.
