Ethereum sentiment has weakened sharply in May as traders react to price pressure, ETF outflows, Foundation exits, and slower network growth.
Santiment said Ethereum has seen a sharp shift in market mood, with its market cap down 11.6% over 15 days. The data platform said $ETH is now at risk of falling below $2,000 for the first time since late March if selling pressure continues.
The report said Ethereum’s social dominance rose while price kept falling. That pattern can point to higher attention, but Santiment said the tone of discussion moved toward fear and frustration instead of optimism.
Santiment also said 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 had moved closer to 1.0, showing that traders had become far less confident.
ETF outflows weigh on $ETH demand
ETF flows are one of the main pressure points. Santiment said several Ethereum ETF products saw outflows through May, including large exits from BlackRock-related funds. It also said no total Ethereum ETF inflow day above $50 million had been recorded in three weeks.
📉 Ethereum sentiment has flipped hard, and retail has jumped from crypto’s #2 market cap quickly. ETF outflows, Foundation exits, slowing network growth, and nonstop bearish narratives have traders questioning $ETH like never before. Here’s our take. 👇https://t.co/RDpVPbdIZs pic.twitter.com/y7JPlcZEPK
— Santiment Intelligence (@SantimentData) May 22, 2026
Related reports also show why traders are watching the $2,000 area. Earlier market coverage said Ethereum ETFs recorded more than $340 million in net outflows over six trading sessions, while $ETH struggled to reclaim $2,150.
JPMorgan has also flagged weaker Ethereum demand compared with Bitcoin. The bank said Bitcoin ETFs recovered about two-thirds of recent outflows, while Ether ETFs recovered only about one-third. It also said $ETH and altcoins may keep lagging without stronger DeFi activity and real-world use cases.
Foundation exits add to trader doubts
Ethereum Foundation changes have also fed the weaker mood. Recent coverage noted that Carl Beek and Julian Ma announced exits from the Ethereum Foundation, adding to broader Protocol Cluster changes.
Santiment said traders often react quickly to these narratives. It added that reports about Foundation exits and public claims about $ETH supporters reducing exposure helped build the current bearish mood. Some of those claims lacked full context, but they still shaped trader behavior.
The report also noted that Ethereum remains strong in development activity. Santiment said Ethereum still leads in raw developer work, even as 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, which traders may read as a sign of weaker demand for $ETH.
Ethereum was trading near $2,125 to $2,135 on May 22, based on market data crypto.news. That keeps $ETH close to the support zone watched by traders after recent outflows and technical weakness.
Santiment said “Whether $ETH is actually approaching one of those moments remains uncertain,” referring to whether extreme bearish sentiment could turn into a contrarian setup. For now, the market is focused on whether Ethereum can restore demand, defend the $2,000 area, and prove that network use can recover faster than trader confidence is falling.
