Ethereum’s selloff tests whether its neutrality-first model can defend ETH’s value amid Foundation ‘brain drain’
Ethereum‘s market sentiment has deteriorated significantly as the blockchain network’s native ETH token moves through a medium-term bear phase. Data from blockchain analytics platform Santiment shows that while ETH-related discussions increased in frequency throughout May, the tone of that commentary has shifted toward frustration, disappointment, and concern about deeper downside potential. Ethereum Market Sentiment (Source: Santiment) Analysts at the firm noted that this shift in sentiment reflects a combination of market pressures building simultaneously, including weak spot price action, persistent exchange-traded fund (ETF) outflows, high-profile departures from the Ethereum Foundation, public criticism from longtime ecosystem supporters, and stronger price momentum across competing layer-1 networks like Hyperliquid, Zcash, and Solana. Broader market data from CryptoQuant reinforces this picture of institutional deceleration. The firms spot market and fundamental indicators point to severe structural weakness as ETH prices drop toward the critical $2,000 support level. This spot weakness is most apparent in Ethereums performance relative to the broader market. The ETH/BTC ratio recently fell to roughly 0.02758, a 10-month low, signaling that Ethereum has lagged behind Bitcoin amid current weak market conditions. This has created a split-market identity in which spot investors are steadily reducing exposure, market liquidity has thinned, and institutional buying pressure has largely vanished from major









