Ethereum Price Drops 3% Today (March 7) – Is Plummeting Social Sentiment a Signal for a Rebound?

Jakarta, Pintu News – Ethereum (ETH) price fell 3% on March 7, 2025, marking further weakness amid social sentiment that plummeted to its lowest level this year. The decline comes as network activity weakens, total value locked (TVL) decreases, and investor concerns over ETH supply emissions.

However, some analysts feel that extreme negative sentiment is often a sign that the market has bottomed out and is ready for a rebound.

Ethereum Price Drops 3.62% in 24 Hours

On March 7, 2025, Ethereum (ETH) was trading at approximately $2,177 (around 35,707,270 IDR), marking a 3.62% decline in the past 24 hours. During this period, ETH reached a high of 37,927,286 IDR before sliding down near its daily low of 34,570,759 IDR.

At the time of writing, data from CoinMarketCap shows that Ethereum’s market capitalization stands at around $262.27 billion, with daily trading volume falling 7% to $21.2 billion in the last 24 hours.

Read also: Bitcoin Price Slips Today (March 7) – BTC Dominance Declines as Investors Flock to Altcoin Ahead of White House Crypto Summit!

Ethereum Social Sentiment Hits Yearly Low – Could This Signal a Rebound?

Social sentiment towards Ethereum (ETH) has reached its lowest point of the year, as the price performance lags behind other cryptos. However, according to Santiment, this could be a signal that Ethereum is ready to bounce back.

In a report shared on March 5 via the X platform, Santiment found that traders’ conversations about Ether on various social media, such as X, Reddit, and Telegram, tend to be more bearish compared to other major cryptocurrencies.

“For those who continue to patiently hold Ethereum, the increasing bearish sentiment on social media could be a positive sign for a potential price reversal once the crypto market begins to stabilize,” Santiment said.

Based on data from CoinMarketCap, the price of Ethereum has dropped by more than 20% in the past month, currently trading at $2,177. In comparison, Bitcoin (BTC) has only seen a 10% drop in the same period, with the current price sitting at around $88,000 per BTC.

Read also: 4 Altcoin to Dump in March Before the U.S. Crypto Summit Shakes the Market!

Douro Labs CEO: Ethereum’s Bearish Sentiment May Indicate a Market Reversal!

In an interview with Cointelegraph, Mike Cahill, CEO of Douro Labs-a major contributor to the Pyth Network (PYTH), emphasized the importance of distinguishing between short-term narratives and long-term fundamentals in looking at Ethereum (ETH) price movements.

According to Cahill, although ETH’s weak performance has led to a decline in social sentiment, this does not necessarily reflect a long-term trend.

“Historically, extreme bearish sentiment often coincides with market bottoms. Price movements tend to influence social sentiment first-not the other way around,” he said.

Cahill also added that if the crypto market begins to stabilize, Ethereum is in a strong position to regain liquidity as well as attract institutional interest.

According to Santiment data, from March to September last year, sentiment towards Ethereum was bullish, in line with the overall crypto market rally. However, after September, sentiment started to turn bearish, and this negative trend continued until the beginning of this year.

Kronos Research Analyst: Ethereum May Be Gearing Up for a Major Rebound

In addition, Dominick John, an analyst from Kronos Research, told Cointelegraph that while Ethereum’s (ETH) current performance is disappointing for short-term investors, there is an upside.

Read also: Ethereum Developers Successfully Deploy Pectra Upgrade on Sepolia Testnet Ahead of Mainnet Launch!

Extreme negative sentiment often signals that the market has reached a cyclical low and could be a sign of a significant rebound.

“Factors such as interest rate cuts or regulatory clarity around ETH staking in ETFs could push prices higher,” he said.

In addition, heavy buying by institutional investors, including the Trump family-backed World Liberty Financial (WLFI), shows long-term confidence in ETH.

WLFI recently added $10 million worth of ETH holdings in the last seven days, confirming its optimism for the asset.

According to Santiment, the decline in ETH prices was also influenced by weak network activity, reduced total value locked (TVL), as well as investors’ concerns about the emission rate of ETH supply.

One of the key indicators, the MVRV Z-Score, which is used to measure whether Ethereum is overvalued or undervalued, recently dropped to its lowest level in 17 months.

The last time ETH’s MVRV Z-Score reached similar levels was in October 2023, before ETH experienced a surge of almost 160%. A similar trend also occurred in December 2022 and March 2020, where a drop in Z-Score was always followed by a significant bullish rally.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• Cointelegraph. Ether sentiment hits yearly low but that could be a good thing: Santiment. Accessed on March 7, 2025