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Ethereum market sentiment has entered extreme fear as ETH trades near $1,626 after falling about 12% over the past week. Negative social media comments now outweigh positive views, while spot Ethereum exchange-traded funds have recorded four straight weeks of outflows. Traders are watching the $1,500 support level as futures leverage falls and exchange balances decline.
Santiment data placed Ethereum’s positive-to-negative social commentary ratio near 1.09 on June 9. The reading marked one of the weakest sentiment levels recorded this year. Traders have become more bearish after ETH underperformed Bitcoin and several other large cryptocurrencies.
However, Santiment said such conditions have previously appeared near market turning points. The firm stated that this is “where markets become most dangerous for bears.” Still, historical sentiment patterns do not confirm that Ethereum has reached its final low.
Market conditions were different in April. Ethereum traded above $2,400 on April 22 as social sentiment moved into extreme greed. ETH has since lost about 32% of its value, falling toward $1,626.
Trader Ash Crypto compared the latest Ethereum decline with the market breakdown recorded in June 2022. At that time, ETH lost several support levels before falling to about $880. The price later recovered, making that level the bottom of the previous bear market.
“Everyone gave up on it. That turned out to be the exact bottom of the whole bear market,” the trader said. His comparison is based on timing, price structure and market sentiment. Nevertheless, the current cycle could follow a different path.
Ash Crypto identified $1,500 as the next major support level. He said a weekly close above that price could support a recovery similar to the 2022 move. He also warned that a weekly close below $1,500 could expose the $1,000 area.
“Two ways this plays out,” he said, before outlining the possible support and breakdown scenarios. These levels reflect his technical assessment and do not guarantee either outcome.
Ethereum futures traders have reduced their positions during the recent sell-off. Total ETH open interest across exchanges has fallen by about 25%, dropping from $16.6 billion in May to $12.6 billion.
Gate.io recorded the largest reduction. Its ETH open interest fell about 45%, from $4.84 billion on May 7 to $2.68 billion. Bybit’s open interest also dropped to nearly $805 million, close to levels last recorded in April 2025.
Meanwhile, Binance open interest has stayed near $2.76 billion. Funding rates on the exchange have turned negative, with the latest reading near minus 0.0047. This means short-position holders are paying to keep their trades open.
Lower open interest indicates that traders have closed many leveraged positions. However, it does not show whether buyers will return or whether selling pressure has ended.
Nearly 480,000 ETH has left Binance, OKX, Gemini and Bitfinex over the past few days. Binance reserves fell from 3.87 million ETH to 3.65 million ETH, while Bitfinex balances dropped from 2.67 million ETH to 2.50 million ETH.
OKX reserves declined from 424,000 ETH to about 336,000 ETH. Gemini holdings also fell to roughly 522,000 ETH. Lower exchange balances can reduce immediately available supply although price gains still depend on stronger demand.
Spot Ethereum ETFs have recorded net outflows for four straight weeks. The withdrawals point to weak institutional demand during the price decline. Without sustained inflows, ETH may struggle to build a stable recovery.
Analyst Ardi also noted that Ethereum’s weekly relative strength index has not fallen below 30. Previous cycle bottoms formed after the indicator entered oversold territory for several weeks. He said there is a ‘small possibility’ that ETH may bottom without reaching the same reading, but the claim remains uncertain.
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