While Bitcoin price taking a breather, Ether is the middle of another impressive rally as Fear & Greed Index signaling “greed”

Bitcoin price had seen a price resurgence after 12 consecutive days of upward momentum, also the first time since February when it headed towards the previous all-time high. The Crypto Fear & Greed Index has been updated to “greed” as BTC hits $42,600. Meanwhile, Ether price has managed to reclaim the $2,600, reaching its highest price since June 15.


ETH/USD 4-hour chart | Source: TradingView

Fear and Greed Index back to greed as Bitcoin price hits $42,600, ETH surpasses $2,600

After a severe drop to $29,000 in July, Bitcoin rallied nearly 45% in less than two weeks. BTC is currently priced at $41,400 as the Fear and Greed Index has shifted to 60, indicating greed in the market. The shift in momentum comes one month after the index was at 21, or extreme fear.

The Fear and Greed Index is a popular metric that follows several aspects within the cryptocurrency community to determine the general feelings towards BTC and other digital assets. More precisely, those factors include surveys, social media comments, volatility, and volume.


Crypto Fear & Greed Index as of August 1 | Source: Alternative.me

Now, the latest developments in the field have turned the crowd’s sentiment. As a result, the index has gone to 60 (Greed) for the first time in nearly three months after plummeting to 10 (Extreme Fear) several times. Getting out of the fear zone into greed now could be connected to the recent price surge.

But at the moment, BTC is moving in the opposite direction, as it has often trended so far. At press time, BTC was unable to sustain its momentum above $42,000. While Bitcoin is taking a breather, Ethereum is in the middle of another impressive rally.

A few hours ago, ETH rose to $2,600, reaching its highest price since June 15. ETH has been on a roll ahead of its much-anticipated London hard fork that is expected to occur in the coming days. But rather, Ether’s price recovery has been accompanied by a notable shift in market sentiment. And as mentioned above, that’s what traders are now exhibiting “greed” after weeks of fluctuating between “neutral” and “fear.”

According to Santiment, the BTC price surge is partly due to this week’s outflows from exchanges.

“Bitcoin’s exchange action was a primary initiator of the breakout we saw this week. BTC’s price has hit $42.5k, and there were huge exchange activity swings favoring coins moving off of exchanges Monday, Wednesday, & Thursday to push prices upwards”, Santiment tweeted.


Source: Santiment

This week’s massive BTC outflows occurring on three separate days are clear indicators of buyers buying BTC and moving it off exchanges, reducing liquidity. In another development, ETH supply on exchanges has been drained. At the same time, the supply of coins in smart contracts is continuously increasing.

Therefore, it should be noted that too much greed can lead to a correction, just as a price increase comes in times of extreme fear.

Read more:

Follow us on Telegram

Follow us on Twitter

Follow us on Facebook

You might also like