The Ethereum Fear and Greed Index, a popular barometer to gauge market sentiment, currently sits at 55, indicating a shift toward greed.
This marks a noticeable uptick from readings over the past weeks, which was paralleled by an increase in Ethereum’s price.
Understanding index and its recent trends
The Ethereum Fear and Greed Index is a tool that provides insight into the collective sentiment of Ethereum investors.
A reading below 50 suggests a predominance of fear in the market. Meanwhile, a score above 50 points toward greed. Over the past month, the index has hovered largely in the neutral zone.
For instance, on Oct. 12, the index registered a reading of 41, with Ethereum priced at $1,566.
By Oct. 11, the index fluctuated slightly but remained neutral, ranging from 42 to 45. During that period, Ethereum’s price had been oscillating between $1,566 and $1,576.
The recent shift to 55 suggests a growing bullish sentiment among investors.
Closer look at Ethereum’s price movement
At the time of writing, Ethereum trades at $1,628, a marginal increase of 1.4%, according to CoinGecko data. The cryptocurrency has been trading between $1,603 and $1,646 in the last 24 hours.
Ethereum’s market capitalization stands robust at approximately $196.4 billion, with a 24-hour trading volume of roughly $8.7 billion.
However, investors should exercise caution. As noted by 100eyes Crypto Scanner, there is an RSI bearish divergence on the 1-hour chart for Ethereum, which could potentially indicate an impending price drop.
🚨 Crypto alert:
[#ETH-#USDT] RSI Bearish Divergence (1h) pic.twitter.com/fuuxx4dauX— 100eyes Crypto Scanner 🌐 (@100eyesCrypto) October 22, 2023
