Ethereum Bulls Charge Back: Santiment Spots Reversal as Panic Grips Crypto Markets
Fear peaked. Then the whales waded in.
Ethereum's bulls are back in control—just as retail traders hit peak panic. On-chain analytics firm Santiment flags a stunning shift in ETH's trajectory, catching sidelined investors flat-footed.
The turnaround nobody saw coming
While doomscrollers predicted another leg down, smart money quietly accumulated. Now ETH's rebound leaves late sellers scrambling—classic 'buy when there's blood' behavior from institutional players.
Greed-flip dynamics at play
Sentiment indicators suggest the fear-to-greed pendulum swung violently this week. Traders who capitulated at the bottom? They're now the same ones FOMO-buying at 20% premiums. Some things never change—like Wall Street's knack for profiting from Main Street's panic.
As one fund manager quipped: 'We don't time markets. We just wait for you to lose hope.'
Caution: FOMO May Halt the Rally
While Optimism has returned, Santiment warned that this sudden bullish enthusiasm might actually work against traders. Historically, crypto prices often move opposite to crowd expectations, and Santiment believes the latest burst of confidence could trigger a short-term pullback.
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Earlier this week, when Ethereum traded NEAR $3,700, sentiment was deeply negative, marking the second-most bearish reading since April. That pessimism, Santiment noted, helped fuel the rally as traders capitulated.
“When traders slow their expectations of a quick return to $4,000 and when bullish sentiment calms down again, that will be your true buy signal,” the firm said.
Market Still Fearful Despite ETH Optimism
Outside of Ethereum, broader market sentiment remains grim. The crypto Fear & Greed Index fell to 24 out of 100 on Friday, placing the market squarely in “Extreme Fear.”
Analysts attribute the ongoing weakness to rising U.S.-China trade tensions and other macroeconomic headwinds that have weighed on risk assets. The index hit 21 points on Tuesday, its lowest level in nearly seven months, after Bitcoin briefly slipped below $106,000.
