Ethereum price has risen slightly in the past two straight days as sentiment in the market waned. ETH rose to a high of $1,386, which was slightly above last week’s low of $1,213. This happened as the fear and greed index slipped while the VIX and the US dollar index bounced back. Still, this price has dropped by more than 60% this year alone.
Ethereum price has held relatively steady in the past two days even as fear engulfed the financial market. The closely watched fear and greed index plummeted to 18, which was the lowest level in months. It was at the greed level of 60 in the same time last month.
The fear and greed index is an important tool that gauges the overall market sentiment. It looks at things like the VIX index, put and call options, stock price strength and breadth, and junk bond demand. Meanwhile, the Bitcoin fear and greed index has dropped to 20.
Ethereum price has also held steady as the US dollar index has surged to the highest level in more than two decades. And on Monday, the Dow Jones continued falling as global risks continued rising. Ethereum is also crawling back as investors assess the impact of the recent merge event.
A key issue among investors is that the coin has now become a target of regulators because of the staking rewards. In a recent statement, the head of the SEC warned that the coin has now turned into a security.
The daily chart shows that ETH price has been in a strong bearish trend in the past few days. This retreat happened as investors embraced the ‘buy the rumor, sell the fact’ situation after the merge. Along the way, the coin has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has pointed slightly upwards.
Therefore, there is a likelihood that Ethereum price will continue rising as the sell-off takes a breather. If this happens, the next key level to watch will be at $1,500. A move below the support at $1,231 will invalidate the bearish view. For an up-to-date ETH price prediction, subscribe to our highly-accurate S&R indicator here.
This post was last modified on Sep 27, 2022, 09:22 BST 09:22