Ethereum Fear and Greed Index Points to Rising Investor Optimism

The Ethereum Fear and Greed Index, a popular barometer to gauge market sentiment, currently sits at 55, indicating a shift toward greed.

This marks a noticeable uptick from readings over the past weeks, which was paralleled by an increase in Ethereum's price.

Understanding index and its recent trends

The Ethereum Fear and Greed Index is a tool that provides insight into the collective sentiment of Ethereum investors.

A reading below 50 suggests a predominance of fear in the market. Meanwhile, a score above 50 points toward greed. Over the past month, the index has hovered largely in the neutral zone.

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For instance, on Oct. 12, the index registered a reading of 41, with Ethereum priced at $1,566.

By Oct. 11, the index fluctuated slightly but remained neutral, ranging from 42 to 45. During that period, Ethereum's price had been oscillating between $1,566 and $1,576.

The recent shift to 55 suggests a growing bullish sentiment among investors.

Closer look at Ethereum's price movement

At the time of writing, Ethereum trades at $1,628, a marginal increase of 1.4%, according to CoinGecko data. The cryptocurrency has been trading between $1,603 and $1,646 in the last 24 hours.

Ethereum's market capitalization stands robust at approximately $196.4 billion, with a 24-hour trading volume of roughly $8.7 billion.

However, investors should exercise caution. As noted by 100eyes Crypto Scanner, there is an RSI bearish divergence on the 1-hour chart for Ethereum, which could potentially indicate an impending price drop.