Ethereum Traders Swing from Fear to FOMO as Bullish Fever Returns

Ethereum traders’ mood flipped fast from fear to excitement as prices neared $3,500, showing how emotions drive short-term moves.

Social sentiment and price trends moved hand in hand from May to November, proving traders still follow market emotions closely.

Sudden optimism after October’s drop may signal caution since extreme crowd enthusiasm often comes before a market cooldown.

Ethereum’s market sentiment has taken a dramatic turn, revealing how quickly trader psychology can flip from fear to frenzy. According to Santiment, traders have shifted from extreme bearishness to extreme optimism almost overnight, driven by Ethereum’s rebound toward $3,500. This sharp sentiment reversal highlights how retail excitement can influence short-term price direction — often in the opposite way they expect.

Santiment explained on X, “Ethereum traders have quickly pivoted from being extremely bearish to extreme bullish… But is retail getting overly eager?” The analytics firm warned that crowd euphoria may signal caution. “Prices historically move the opposite direction of crowd expectations,” it added, advising traders to wait until bullish enthusiasm cools before buying again.

Sentiment Reversal Mirrors Price Momentum

Between early May and early November 2025, Ethereum’s price and social sentiment moved almost in sync. During May and June, both the asset’s price and positive commentary surged, showing strong trader confidence. Consequently, bullish sentiment often peaked ahead of short-lived rallies, revealing a close psychological tie between optimism and buying behavior.

By mid-July, Ethereum continued climbing as bullish comments stayed above neutral levels. However, volatility hit in September when prices wavered, and bearish voices grew louder. This shift suggested a fragile confidence among traders as the market entered choppy territory.

Traders Flip Bullish After Late-October Drop

In late October, pessimism dominated Ethereum’s discussions. The bullish-to-bearish ratio dropped to 0.86, showing traders were losing faith. Prices slipped during this period, reflecting uncertainty and caution. However, sentiment flipped sharply in early November when Ethereum rebounded near $3,500. The ratio spiked to 2.7 — the highest bullish bias since July — within just two days.

Moreover, this rebound showed how quickly retail traders react to price swings. Their emotional cycles of fear and greed remain tightly linked to short-term moves. Santiment suggested patience, hinting that the best buy opportunities often come when optimism fades again.

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