The on-chain analytics firm said two earlier sentiment washouts were followed by roughly 14% and 7% rebounds, though it cautioned that a recovery may not be immediate.
Ethereum saw the ratio of negative to positive comments across major online communities reach extremely bearish levels three times in the past month, Santiment said in a July 24 post on X. The on-chain analytics firm said the signal can look negative on the surface, but similar sentiment collapses have previously aligned with price weakness and later dip-buying opportunities. It said the prior two sharp drops in sentiment were followed by Ethereum rebounds of about 14% and 7%. Santiment cautioned that deeply negative sentiment does not automatically trigger an immediate bounce. Still, it said a recovery could take shape if key fundamentals such as ETF inflows, Layer 2 (networks built to scale blockchains) ecosystem activity and protocol upgrades remain intact even as some traders leave the market.