The on-chain ecosystem of Ethereum has recently been rocked by a wave of scams and rug pulls, creating a period that many are describing as a bloodbath. While the underlying technology of the ETH blockchain remains robust and secure, the sheer volume of malicious projects and deceptive schemes is taking a significant toll on retail investor confidence. Is Ethereum Still The Home Of DeFi Innovation? The Ethereum on-chain ecosystem has been plagued by scams and rug pulls, resulting in significant financial losses and, more importantly, a decline in retail investor confidence. Analyst known as Fat Tony on X has expressed deep frustration that BOOE hasn’t gotten more support from Ethereum’s own community, possibly due to the wave of malicious acts on the ETH ecosystem. Related Reading: Bitcoin Weakness Vs. Ethereum Strength: On-Chain Data Reveals Divergence He highlighted the Book of Ethereum (BOOE) as an exemplary project that embodies what ETH is supposed to stand for and distinguishes itself through several key characteristics. No Paid KOLs as the project has not relied on paid crypto influencers for promotion, which is a common tactic used by fraudulent projects to pump their tokens. With a resilient community, BOOE has built its foundation on a strong and organic community, a sign of a project with genuine, grassroots support. A generous team, which he praises for its generosity and ethical approach, stands in stark contrast to the greed of scam artists. Furthermore, Tony notes that numerous high-profile ETH founders and accounts are interacting with the project, which, in his view, is becoming expected at this point. Thus, he encourages the ETH community to support BOOE, which actually stands for something, and to move away from a speculative mindset of max extraction with zero vision. How The ETH Ecosystem Must Fight Back While scams and rug pulls are eroding retail confidence, investor Sassal0x, founder of Thedailygwei, has also revealed a scathing critique of Ethereum’s competitor chains, accusing them of engaging in a desperate strategy of lawfare to stifle the growth of ETH’s Layer 2 solutions. In his view, this is not a sign of strength but a clear admission of weakness. Related Reading: Ethereum At The Core: Where Every Major Crypto Trend Converges According to Sassal0x, the overwhelming adoption of ETH L2s demonstrates their superiority in the free market, a reality that has left competitors with no viable path to challenge ETH’s dominance. The analyst notes that this new, underhanded strategy comes after a long period of failed FUD (fear, uncertainty, and doubt) campaigns. Since misinformation has proven ineffective in slowing down L2 growth, competitors are now resorting to using nation-state governments to kill their competition. As a result, Sassal0x concludes with a powerful call to action for the Ethereum community. Instead of being complacent, the ETH ecosystem must fight back against this as much as we can. Featured image from Adobe Stock, chart from Tradingview.com
Ethereum is closing in on a historic test, hovering just 6.4% below its all-time high of $4,891. Despite persistent sell-offs from retail traders, the asset’s upward momentum continues, signaling a potential breakthrough that could set the stage for new record levels. Retail Sentiment Misfires: Lessons From Past Greed And Corrections Santiment, a popular platform in on-chain and market analytics, recently highlighted in a post that Ethereum is now within striking distance of a historic milestone — just 6.4% away from its all-time high of $4,891 set on November 16, 2021. Related Reading: Ethereum Price Breaks Toward $5,000, Analyst Reveals When To Sell Everything And Why This approach toward record territory has been accompanied by a surprising trend: retail traders are consistently selling off their holdings even as the second-largest cryptocurrency by market cap pushes higher. The divergence between price action and retail sentiment is becoming increasingly notable in this rally. When smaller market participants become overly optimistic, prices tend to cool off; conversely, when fear and skepticism prevail, the market often continues its upward march. This pattern has played out multiple times in the past, making the current wave of selling from retail traders a potentially bullish signal. Santiment also pointed to previous scenarios to support this observation. On June 16, 2025, and again on July 30, 2025, Ethereum experienced periods of extreme retail greed, which were followed by sharp corrections as the market recalibrated. These historical instances underline the contrarian nature of market psychology, where excessive optimism can precede pullbacks, while disbelief and hesitation can pave the way for price growth. In the current rally, retail sentiment has been marked by FUD (fear, uncertainty, and doubt) and disbelief. Despite Ethereum consistently printing higher highs, many traders remain convinced that the move is unsustainable. Loose Coins Changing Hands as Ethereum Eyes Historic Breakout This emotional disconnect between sentiment and price action may be providing fuel for Ethereum’s continued ascent, as stronger hands — particularly institutional players and large-scale investors — absorb the supply being offloaded by smaller traders. If the current dynamics persist, a break above $4,891 could happen sooner than many expect, potentially marking a significant chapter in Ethereum’s market history The platform further noted that major stakeholders have been actively accumulating Ethereum, taking advantage of the coins that smaller traders are currently willing to sell. This quiet but steady accumulation suggests that larger players are positioning themselves for a potential breakout. Related Reading: Ethereum Rally Not Fueled By Bitcoin Dump, On-Chain Signals Show With minimal sentiment-based resistance in the market, prices appear well-positioned to push higher. If this trend continues, Ethereum could break through its previous all-time high and set new records in the near future, marking a historic moment for the asset. Featured image from Ethereum, chart from Tradingview.com
When Bitcoin soars into a bull market, skeptics cling to fear, uncertainty and doubt. Are you prepared to repel these FUD claims?