Ethereum index reflects greed while the price has gone up since the previous day.
The “Fear and Greed Index” for the second-largest cryptocurrency, ETH, has reached 70, indicating greed. One approach to measure social sentiment in the cryptocurrency industry is through this index. Aside from analyzing the market, the index may also help forecast a potential change in cryptocurrency prices based on its value.
Data Indicates That The Price Of Ethereum Might Soon Reverse
Investors may buy cryptocurrencies like Bitcoin, Ethereum, etc . – at the moment. when the index is in the fear zone or even extreme fear. When it displays 70, as it does now, that signifies Ethereum is in the fear territory.
The market may be due for a correction as a result of this and the even worse category of extreme fear. The native token of the second-most popular cryptocurrency increased by 3.62% during the course of the last 24 hours, reaching a local high of $1,596. Then, ETH dropped by almost 2%, down to $1,571.
Ethereum Fear and Greed Index is 70 ~ Greed
Current price: $1,566https://t.co/kvIBEIGPFEhttps://t.co/F4eTo2X4l2 pic.twitter.com/ZDESo8fa04— Ethereum Fear and Greed Index (@EthereumFear) January 17, 2023
Whales bet $400 per ETH
In anticipation of ETH’s price decline by that much, numerous unidentified whales purchased 26,000 put options with a $400 strike price. On June 30th, the options will expire.
Put options, in contrast, to call options, let investors sell an underlying asset at a predetermined strike price, even if the asset drops lower.
This bearish bet may be set up on the Shanghai upgrade, which is scheduled to go live in February. The upgrade will give stakeholders the option to remove their staked Ethereum from the Ethereum 2.0 deposit contract, among other things.
Santiment on-chain data aggregator believes that Ethereum still has a possibility to increase and reach its prior all-time high, which was over $5,000 in price, despite this bearish bet.
The analysts believe that once Ethereum touched the aforementioned historic height, it was adversely affected by $60 transaction fees that were too high. According to Santiment, the price has increased once more after these fees were reduced to just $2.
