On Feb. 20, Ether (ETH) price rallied to a new high at $2,015 and this caused multiple indicators to display signs of excessive optimism. While the excitement could be easily justified by Ether’s year-to-date 176% gain, these warning signs should not be ignored.
On of the primary driving factors of the current bullish sentiment is the launch of CME ETH futures and Grayscale Investments ETH Trust reaching $6.3 billion assets under management. The DeFi phenomenon also continues as there is currently more than $21 billion worth of Ether locked in DeFi.
Crypto Fear & Greed Index. Source: alternative.me
Currently, the Crypto Fear & Greed Indexis at 93, indicating “Extreme Greed” according to its methodology. Many traders use the metric as a counter trading signal, meaning, the extreme fear level can be a sign that investors are bullish and a buying opportunity is present. In contrast, when investors are getting too greedy, it could be a sign that the market is due for a correction.
Unlike the excessively leveraged retail traders, the more experienced market makers Title: 3 key Ethereum price metrics show pro traders are aiming for $2K ETH
Sourced From: cointelegraph.com/news/3-key-ethereum-price-metrics-show-pro-traders-are-aiming-for-2k-eth
Published Date: Wed, 03 Mar 2021 21:00:00 +0000