Cryptocurrency market participants are optimistic about prospects of “Digital Gold”
As Ethereum (ETH) and Bitcoin (BTC) grapple with key levels of resistance, the crypto sentiment indices are moving back into “neutral” areas.
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.”
Therefore, this important indicator of Bitcoin (BTC) sentiment managed to offset losses caused by the collapse of Terra (LUNA) and the subsequent dramatic drop in 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) attempted to retest the $25,000 level for the first time in two months. The second cryptocurrency, Ethereum (ETH) jumped above $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 optimistic about merge
In the last days, crypto market sentiment is positive as many holders expect the price to rise after the merge activation by the Ethereum (ETH) mainnet. This game changing event is expected to take place on 15th September.
However, trader Avi Felman warned that this euphoria might be dangerous. Typically, big rallies do not happen right after a major tech upgrade.
As previously covered by U.Today, BitMEX co-founder Arthur Hayes hinted at the scenario that would allow the price of ETH to rocket after the merge.
