- Greed remained dominant as the price of crypto assets declined.
- BTC has slipped and stayed below its support levels.
- Ethereum maintains a fragile support level amidst recent declines.
Explore recent downturns in crypto, with key insights into Bitcoin and Ethereum trends, and the market’s prevailing sentiment.
Fear and Greed Index remains positive
An analysis of the crypto Fear and Greed Index showed that despite the decline in the prices of most cryptocurrencies, there remained a sense of optimism.
The index indicated a state of greed, with a current rating of around 64%.
However, an analysis of the chart on Coinglass showed that the level of greed was decreasing at press time. The previous day, the index was around 74.
This suggested that while the crowd’s sentiment remains positive, it was becoming less bullish.
COINOTAG’s analysis of the price trends of Bitcoin and Ethereum explained why the Fear and Greed Index has trended the way it has in the last few days.
How Bitcoin affected the Index
Bitcoin’s price trend showed that the $65,000 price range had served as a long-term support level. However, the recent downtrend has broken this support.
The analysis indicated that Bitcoin finally broke below the support line on the 18th of June, when the price touched $65,152 after a 2% decline.
Its Relative Strength Index (RSI) also indicated that it remained stuck below the neutral line, suggesting a strong bear trend at the moment.
While the sentiment of the Fear and Greed Index remained positive at the current price, it could drop if Bitcoin’s price declines further.
Impact of Ethereum on the Index
Ethereum’s price trend indicated a decline in recent days, but it has managed to keep its support level intact. Unlike Bitcoin, Ethereum’s price has shown resilience by maintaining its support despite market volatility.
The chart demonstrated that Ethereum saw a minor decline of less than 1% on the 18th of June, bringing the price down to around $3,482. As of this writing, it has rebounded slightly, trading above $3,500.
While the price of BTC has declined and could affect the Fear and Greed Index, Ethereum’s price stability has contributed to maintaining the index at a balanced level. However, due to BTC’s dominance, any further significant drop in its price could result in widespread market panic.
Conclusion
In conclusion, the crypto market’s current sentiment remains cautiously optimistic despite recent price declines in major assets like Bitcoin and Ethereum. The Fear and Greed Index shows a positive outlook but reveals a decreasing trend in bullish sentiment. Moving forward, Bitcoin’s price movements will be critical in maintaining market sentiment, whereas Ethereum’s relative stability provides a balancing effect. Investors should stay vigilant as fluctuations in these key assets could significantly impact overall market behavior.
