Ethereum sentiment has weakened sharply in Might as merchants react to cost stress, ETF outflows, Basis exits, and slower community progress.
Santiment mentioned Ethereum has seen a pointy shift in market temper, with its market cap down 11.6% over 15 days. The information platform mentioned $ETH is now vulnerable to falling beneath $2,000 for the primary time since late March if promoting stress continues.
The report mentioned Ethereum’s social dominance rose whereas worth saved falling. That sample can level to larger consideration, however Santiment mentioned the tone of dialogue moved towards concern and frustration as a substitute of optimism.
Santiment additionally mentioned bullish and bearish feedback about $ETH moved nearer to steadiness in Might. In late April, bullish feedback had been nonetheless properly above bearish ones. By Might, the ratio had moved nearer to 1.0, exhibiting that merchants had change into far much less assured.
ETF outflows weigh on $ETH demand
ETF flows are one of many major stress factors. Santiment mentioned a number of Ethereum ETF merchandise noticed outflows by Might, together with giant exits from BlackRock-related funds. It additionally mentioned no whole Ethereum ETF influx day above $50 million had been recorded in three weeks.
📉 Ethereum sentiment has flipped exhausting, and retail has jumped from crypto’s #2 market cap shortly. ETF outflows, Basis exits, slowing community progress, and nonstop bearish narratives have merchants questioning $ETH like by no means earlier than. Right here’s our take. 👇https://t.co/RDpVPbdIZs pic.twitter.com/y7JPlcZEPK
— Santiment Intelligence (@SantimentData) Might 22, 2026
Associated experiences additionally present why merchants are watching the $2,000 space. Earlier market protection mentioned Ethereum ETFs recorded greater than $340 million in web outflows over six buying and selling periods, whereas $ETH struggled to reclaim $2,150.
JPMorgan has additionally flagged weaker Ethereum demand in contrast with Bitcoin. The financial institution mentioned Bitcoin ETFs recovered about two-thirds of current outflows, whereas Ether ETFs recovered solely about one-third. It additionally mentioned $ETH and altcoins might maintain lagging with out stronger DeFi exercise and real-world use instances.
Basis exits add to dealer doubts
Ethereum Basis modifications have additionally fed the weaker temper. Latest protection famous that Carl Beek and Julian Ma introduced exits from the Ethereum Basis, including to broader Protocol Cluster modifications.
Santiment mentioned merchants usually react shortly to those narratives. It added that experiences about Basis exits and public claims about $ETH supporters lowering publicity helped construct the present bearish temper. A few of these claims lacked full context, however they nonetheless formed dealer conduct.
The report additionally famous that Ethereum stays robust in growth exercise. Santiment mentioned Ethereum nonetheless leads in uncooked developer work, at the same time as retail merchants focus extra on sooner worth strikes from rival ecosystems.
Community progress stays the market check
Santiment mentioned day by day energetic addresses and community progress have cooled from stronger intervals in 2024 and 2025. Fewer new wallets are interacting with Ethereum, which merchants might learn as an indication of weaker demand for $ETH.
Ethereum was buying and selling close to $2,125 to $2,135 on Might 22, based mostly on market information crypto.information. That retains $ETH near the help zone watched by merchants after current outflows and technical weak point.
Santiment mentioned “Whether or not $ETH is definitely approaching a type of moments stays unsure,” referring as to whether excessive bearish sentiment may flip right into a contrarian setup. For now, the market is concentrated on whether or not Ethereum can restore demand, defend the $2,000 space, and show that community use can get well sooner than dealer confidence is falling.
