Ethereum (ETH) social commentary has turned very bearish for the third time in a month, according to Santiment. Two previous low readings preceded price rebounds.

The reading comes as ETH trades near $1,854 and spot exchange-traded fund (ETF) demand strengthens. Santiment treats crowd pessimism as a contrarian marker.

Why Ethereum’s Bearish Sentiment Matters

Santiment tracked the ratio of positive to negative Ethereum commentary across X, Reddit, Telegram, and other crypto channels. The reading fell to 1.089 on July 24, its third bearish extreme in a month.

The two earlier troughs arrived on June 27 and July 11. ETH gained 14% over the following 7 days and 7% over the next 4 days.

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Nonetheless, Santiment stopped short of calling a reversal.

“The bullish takeaway isn’t that negative sentiment guarantees an instant reversal. It’s that when traders are loudly giving up on Ethereum while ETF flows, L2 activity, and protocol upgrades remain active, the #2 market cap in crypto often gets a cleaner setup for a turn-around…” the firm said.

Ethereum ETF Inflows and On-Chain Data Flash Bullish Signals in July

Notably, the crowd turned bearish, but institutional buyers did not follow. Ethereum ETFs pulled in $103.9 million in the week ending July 24, more than any other spot crypto product. That marked a third straight positive week after inflows of $84 million and $105 million.

Demand is not the only metric improving. CryptoQuant said ETH is “undervalued relative to its cost basis.” 

“It trades near $1,900 — roughly 17% below its realized price of $2,304 — and in the lower half of its realized price band, a zone historically associated with market bottoms and asymmetric upside,” the firm explained.

At the same time, the ETH/BTC exchange inflow ratio now sits near 0.8, down from above 1.5 in August 2025. Earlier bottoms formed nearer 0.4.

XWIN Research also flagged Binance reserves as a key signal. Holdings there have fallen from nearly 5 million ETH in mid-2025 to around 3.8 million. That leaves fewer coins ready to sell.

“While this does not confirm that Ethereum has reached its final bottom, the combination of declining Binance reserves, improving on-chain metrics, and recovering institutional interest suggests that downside risk is gradually diminishing,” the analyst said.

Source: BeInCrypto