The “Fear and Greed Index” for the second largest cryptocurrency ETH has entered the greed zone at 70.
This index is a way of determining the social sentiment in the crypto market. In addition to evaluating the market, depending on its value, the index can also help predict a possible development in crypto prices.
Data suggests that Ethereum price could reverse soon
If the index is in the fear zone (or even extreme fear), it means investors may be buying a cryptocurrency – bitcoin, ethereum, etc. – at the moment. If it shows 70 as it is now, it means that Ethereum is in fear territory. This and the even worse label of “extreme fear” show that the market may be in for a correction.
In the last 24 hours, the native token of the second most popular cryptocurrency is up 3.62% to hit a local high of $1,596. A drop of nearly 2% then followed, pushing ETH to $1,571.
Ethereum’s Fear and Greed Index is 70 ~ Greed. Current Price: $1,566https://t.co/kvIBEIGPFEhttps://t.co/F4eTo2X4l2 pic.twitter.com/ZDESo8fa04
January 17, 2023
Whales bet on $400 per ETH
As previously reported by U.Today, several anonymous whales had bought 26,000 ETH put options with a $400 strike price, betting that ETH would fall that much. The options expire on June 30th. Unlike call options, put options allow investors to sell an underlying asset at a strike price they bet on, even if the asset falls lower. This bearish bet could be based on the Shanghai upgrade due to roll out in February. Among other things, the upgrade will allow stakers to remove their staked Ether from the Ethereum 2.0 deposit contract.
Despite this bearish bet, on-chain data aggregator Santiment still believes Ethereum still has a chance to surge higher and catch its previous all-time high near $5,000.
The team of analysts believe that after hitting the aforementioned all-time high, Ethereum suffered due to the extremely high $60 transaction fees. Now that those fees have dropped to just $2, the price has risen again, Santiment believes.
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