Cryptocurrency market participants are optimistic about prospects of “Digital Gold”
As Ethereum (ETH) and Bitcoin (BTC) are struggling with major levels of resistance, crypto sentiment indexes are getting back to “Neutral” zones.
Crypto “Fear & Greed” index jumps to early April levels
According to the estimation of Alternative, for the first time since April 6, 2022, the cryptocurrency “Fear & Greed” index is at 46/100. While it is still below 50/100, the analysts are treating this metric as “Neutral.”
Bitcoin Fear and Greed Index is 46 – Neutral
Current price: $24,406 pic.twitter.com/alELML0cVE
— Bitcoin Fear and Greed Index (@BitcoinFear) August 13, 2022
As such, this crucial indicator of Bitcoin (BTC) sentiment managed to shrug off the losses caused by the Terra (LUNA) collapse and the subsequent dramatic plunge of crypto prices.
In June 2022, the index briefly plummeted to 6/100, which indicated a level of fear unseen in many years. Only one week ago, the index was at 30/100.
Yesterday, Bitcoin (BTC) tried to reclaim the $25,000 level for the first time in two months. Ethereum (ETH), the second cryptocurrency, jumped over $2,000.
Bitcoin (BTC) and Ethereum (ETH) holders who were lucky enough to buy the bottom in mid-June 2022, are now up 40% and 100%, respectively.
Traders are optimistic ahead of Merge
In the last days, the crypto market’s sentiment is positive as many holders expect prices to rally after the Merge activation by the Ethereum (ETH) mainnet. This game-changing event is expected to happen on September 15.
However, trader Avi Felman warned that this euphoria might be dangerous. Typically, big rallies do not happen right after a major tech upgrade.
As covered by U.Today previously, BitMEX co-founder Arthur Hayes indicated the scenario that would allow the ETH price to rocket after the Merge.