ETH, XRP Sentiment Plunges to Multi-Month Lows, but is Fear Setting Up a Rebound?

Crypto traders are growing increasingly bearish on Ethereum (ETH) and XRP, with sentiment turning sharply negative in the fourth quarter. According to Santiment, social media discussions around both altcoins are showing increasing pessimism.

The analytics platform recorded a sentiment ratio of 0.89 for Ethereum, its lowest since June 7. This means that for every bullish comment, there are almost twice as many bearish comments. XRP's ratio is even lower, at 0.67, its lowest since August 17.

However, Santiment notes that heavy pessimism can sometimes create an opportunity for contrarian traders. When most market participants expect further losses, some selling pressure may have already played out.

Notably, Ethereum whales have been buying up the asset, scooping up 60,000 units worth around $162 million over the past week. Arthur Hayes, a well-known crypto enthusiast, is also bullish on Ethereum, expecting it to reach $10,000 by the end of the year.

XRP, on the other hand, is seeing a big wave of tokens leave exchanges. Daily outflows involving 1 million XRP or more spiked above 320 million tokens, with Binance leading the withdrawals. This trend could potentially reduce selling pressure in the market.