Ethereum Sentiment Flips Bearish as Traders Brace for Drop to $2.5K
Ethereum market sentiment has turned bearish, with Myriad prediction market users assigning a 62.5% chance that ETH will fall to $2,500 before recovering to $4,000. This marks a shift from earlier in the week, when trader sentiment was balanced or optimistic about a price rebound. ETH was recently trading at $3,008, down 10.6% over the past week, and briefly fell below $2,900. Despite short-term pessimism, the long-term outlook remains mostly unchanged among network participants. The Ethereum validator exit queue was at zero on January 19, indicating no mass withdrawals from staking. The queue has since increased slightly to 94, but this is small relative to the over 2.8 million potential validators. Validators may liquidate staked ETH if prices drop further, but this is rare. Increased exits and secondary market sales can create additional price pressure, though current trends are viewed as typical market fluctuations rather than signs of structural change.
