Yuri Molkhan
Ethereum Index is showing greed as the price surges over the past 24 hours
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- Ethereum price could turn around soon, data suggests
- Whales bet on $400 per ETH
The “Fear and Greed Index” for the second largest cryptocurrency ETH has entered the greed zone at 70.
This index is one of the ways to determine the social sentiment in the crypto market. Aside from evaluating the market, depending on its value, the index can help predict possible movement in crypto prices.
Ethereum price could turn around soon, data suggests
When the index is in the fear zone (or even extreme fear), it means that investors could be buying a crypto – bitcoin, ethereum, etc. – right now. If it is showing 70 as it is now, it means Ethereum is in the fear zone. This and the even worse term 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 crypto 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 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 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 bid on, even if the asset goes down. 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 believes Ethereum still has a chance to surge higher and surpass its previous all-time high near $5,000.
The analyst team believes that after hitting the aforementioned historical high, Ethereum took a hit due to 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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