Ethereum Pops Above $1,500 but Sentiment Stays Bearish

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Ethereum surged 9% in the past 24 hours, reclaiming the $1,500 mark amid a wave of optimism sparked by a better-than-expected U.S. inflation report and an unexpected pause on tariffs. The rally nudged the Crypto Fear & Greed Index out of “Extreme Fear” for the first time in weeks, signaling a shift in market mood. But behind the bullish price action, Ethereum’s broader outlook remains complex.

Despite its impressive rebound—outpacing Bitcoin with an 8.1% gain—Ethereum-focused investment products saw $11.2 million in outflows. It’s a troubling sign that institutional investors are still hesitant, even as the overall crypto market claws its way back.

Market Sentiment Still Bearish

On-chain analytics firm Santiment reports a deepening negative sentiment around Ethereum. Since its peak in late 2021, ETH has shed over 77% of its value relative to Bitcoin. Meanwhile, smaller altcoins—many with questionable fundamentals—have outperformed, leaving long-time Ethereum holders frustrated.

📊 Ethereum has been the source of humor for many top cap crypto traders, with the $ETH / $BTC ratio now down a massive -77% since December, 2021. But should its long-term slump make it an automatic write-off by now? Absolutely not. Read our deep dive. 👇https://t.co/JoK5GnI7Dm

— Santiment (@santimentfeed) April 11, 2025

This persistent underperformance has raised questions about Ethereum’s position in a rapidly evolving crypto landscape. While Bitcoin is seen as digital gold and Solana captures attention with its high-speed transactions, Ethereum seems to be caught in an awkward middle ground.

Structural Challenges and Quiet Progress

Ethereum’s shift to Proof-of-Stake and its embrace of Layer-2 scaling solutions were important milestones. But they’ve also fragmented activity across networks, making it harder for users to follow the ecosystem’s progress. Sluggish rollout of updates further adds to the confusion for retail investors.

Also Read: Ethereum (ETH) Price Slips Below $1,500: 3 Key Reasons Behind the Ongoing Sell-Off

Still, Ethereum isn’t standing still. Upgrades like Shanghai in 2023 enabled staking withdrawals, while new developments continue to enhance DeFi and on-chain identity. Liquid staking platforms such as Lido and cbETH underscore its foundational strength.

Looking Ahead: A Misunderstood Giant?

Now trading near $1,540, Ethereum remains the second-largest cryptocurrency by market cap. And while sentiment is bearish, such negativity often precedes major trend reversals. As Ethereum continues to quietly innovate, it may yet prove to be one of the most undervalued assets going into 2025.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.