Ethereum sentiment is at a crossroads, as former supporters reevaluate the network’s usage. ETH is also trading around $2,100, with almost no net gains over the past five years.
Ethereum is going through a “shift in the air,” according to David Hoffman, founder of Bankless. Hoffman recently sold all of his personal ETH holdings, and noticed a shift on social media.
Hoffman, who has previously shown himself to be an Ethereum proponent, has recently begun evaluating the narratives of other cryptocurrencies, especially after a series Breakouts in April. The shift to skepticism in ETH was seen as a strong sign that Ethereum may finally have other competitors, as it faces a shift in the use of cryptocurrencies.
Currently, Bankless has less than 1 ETH in one of them General wallets. Cryptocurrency investor Ryan Adams too Mentioned He will step back from direct control of Bankless, but remains bullish on cryptocurrencies and Ethereum.
According to my path, ETH com. mindshare It fell below the baseline in May and rebounded slightly to 4.2%. Currently, Ethereum maintains its legacy status as a DeFi payments network and stablecoins, but sentiment is still relatively low.
Is Ethereum going through another crypto winter?
As of May 2026, Ethereum sentiment remains intact neutralBased on fear and greed index. ETH’s open interest stands at $12.3 million, near a one-year low. Currently, ETH derivatives trading is more active compared to the crypto winter of 2022-2023.
ETH has already fallen more than 55% from its peak since August 2025, after failing to climb to a higher price range. Continued weakness in the spot market and signs of selling pressure have put pressure on ETH and prevented a price recovery.
According to Bitmine founder Tom Lee, the current sentiment for ETH may reflect general desperation due to low liquidity. Lee still believes that Ethereum can become the settlement layer for global finance and serve as a platform for artificial intelligence agents.
I agree with @RyanSAdams A large group of leaders and developers are ready to ensure this $ Ethereum It remains the future settlement layer for finance and AI
– To me, a lot of the bearish sentiment reflects the disdain and desperation seen at the trough of the crypto winter (finger points to the lows)… https://t.co/RHgwgutIo2
– Thomas (Tom) Lee (not the drummer) FundstratDirect.com (@fundstrat) May 21, 2026
Research by Santiment shows that traders and other ETH supporters have recently turned to worse sentiments. The last Exits The Ethereum Foundation also asked about the network’s goals. Santiment also pointed to Ethereum comments It turned more negative in May, after maintaining a more bullish stance in April.
Additionally, the Ethereum Foundation has pushed L2 chains significantly, leading to a brief bull market and increased liquidity for some networks. Now, the organization has taken on the task of scaling L1 once again, while competing with networks that are already much faster and cheaper.
ETH is turning into an inflationary asset
Current ETH activity is happening at very low gas prices. As a result, more Ethereum is produced every week. The Ethereum network is no longer sound money, and has annual inflation of 0.82%.
Inflation may be partially offset by staking. However, even staking nodes may need to sell or lend some of their ETH to secure profits. Currently, ecosystems such as BNB Chain, Solana, and Hyperliquid are showing more enthusiasm for speculation, while Ethereum lacks a clear narrative and new trends to attract traders.
