Ethereum Sentiment Shifts from FOMO to FUD, Santiment Reports

Ethereum's sentiment has shifted from strong FOMO in late April to noticeable FUD, according to an analysis by crypto sentiment platform Santiment. This change follows Harvard University's complete sell-off of $87 million in Ethereum ETFs a quarter after purchase, the resignation of Ethereum Foundation researchers, and David Hoffman's public exit from the Ethereum project. Santiment interprets this trend as a mildly bullish signal, similar to the significant rise after the mid-2023 market sentiment low. Despite the prevailing panic, Ethereum's non-empty wallet count remains high at 192.92 million, more than triple Bitcoin's approximately 59 million. While DeFi and staking activity surged at the beginning of the year and then normalized, new wallet creation continues at a healthy pace. Fundamental data such as holder numbers and activity do not support claims of Ethereum's network demise. Additionally, Bitcoin's long-short ratio has reached 2.23, the highest since 2026. Historically, high long-short ratios have preceded short-term price corrections, while extremely low short ratios have marked local bottoms. The current optimism contrasts sharply with bearish ETF fund flows, warranting caution.