Ethereum News Today: Ethereum Surges 70% vs Bitcoin as Social Sentiment Hits 95/100 'Extreme Greed' Level

Ether’s recent price surge has drawn attention from sentiment analysts who warn that growing social media enthusiasm could signal an impending correction. According to Santiment, a surge in social media mentions for Ethereum (ETH) has reached levels of “extreme euphoria,” which historically correlate with overvaluation risks [1]. The platform noted that ETH’s price ratio against Bitcoin has risen 70% since early May, accompanied by a sharp increase in social dominance—a metric that reflects the asset’s prominence in crypto discussions. Santiment emphasized that such spikes often precede price reversals, as they indicate crowded trades and irrational speculation [1].

The sentiment provider’s analysis is echoed by Binance’s Fear & Greed Index, which scored Ether at 95 out of 100 on July 25, 2025, signaling “extreme greed” [2]. This indicator, derived from social media activity, forum discussions, and trading behavior, typically acts as a contrarian signal. Historical patterns suggest that markets nearing the index’s upper limit are prone to corrections as speculative fervor overshadows fundamentals. Analysts caution that viral narratives and short-term price optimism could mask risks such as regulatory shifts or macroeconomic pressures.

Despite these warnings, some experts argue the rally may not yet be exhausted. Galaxy Digital CEO Michael Novogratz predicted ETH could reach $4,000 within six months, citing structural demand for Ethereum’s layer-2 innovations and institutional adoption [2]. His forecast contrasts with the cautionary stance of sentiment analysts, who highlight the volatility risks tied to overhyped social metrics. For example, Santiment noted that the current low social dominance for memecoins—a contrast to typical market tops—suggests the broader rally might still have momentum [1].

The divergence between technical indicators and social sentiment underscores the market’s fragility. While Ethereum’s price has risen over 50% in 30 days, driven by factors like ETF speculation and staking rewards, the Fear & Greed Index highlights a disconnect between on-chain data and retail sentiment. Tools like CFGI.io’s sentiment tracking for altcoins further illustrate how viral trends can distort market fundamentals [3]. In Ethereum’s case, the high index score reflects a crypto ecosystem increasingly shaped by social narratives rather than project-specific metrics.

Historical precedents reinforce the caution. Markets have frequently experienced drawdowns when similar indicators hit saturation points, as seen in late 2021 and early 2022. The current ETH rally faces a critical test: whether fundamental upgrades, such as Ethereum’s post-merge efficiency, can sustain investor confidence as risk factors resurface. Santiment’s report also draws parallels to Bitcoin’s recent social dominance spike, which the platform linked to a potential local top for BTC [1].

Critically, the Fear & Greed Index does not confirm price direction but captures psychological extremes. Analysts stress that while social metrics are valuable, they must be contextualized with broader market conditions. The absence of widespread, irrational speculation—often a hallmark of market tops—suggests the current ETH rally may not yet be over. However, the risk of profit-taking or regulatory interventions remains, potentially triggering short-term volatility.

Source:

[1] [Ether’s 'extreme euphoria' social chatter could be a red flag for price](https://cointelegraph.com/news/ether-price-euphoria-social-media-red-flag-price-correction-santiment?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound)

[2] [Crypto Fear & Greed Index | Bitcoin Sentiment](https://www.binance.com/en/square/fear-and-greed-index)

[3] [Shiba Inu Fear and Greed Index | Multiple Timeframes](https://cfgi.io/shibainu-fear-greed-index/)