- Greed remained dominant as the price of crypto assets fell.
- BTC has taken a dip and remained below its support level.
The recent decline in major crypto assets such as Bitcoin [BTC] and ether [ETH] has sent shockwaves through the crypto industry.
While traders kept a close eye on price developments, the Fear and Greed Index indicated that sentiment remains positive for now.
The 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, a sense of optimism remained.
The index indicated a state of greed, with a current rating of around 64%.
However, an analysis of the graph on Mint glass showed that levels of greed were decreasing at the time of writing. The day before the index was around 74.
This suggested that while public sentiment remains positive, it was becoming less bullish.
Source: Coinglass
AMBCrypto’s analysis of Bitcoin and Ethereum price trends explained why the Fear and Greed Index has been trending the way it has in recent 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 downward trend has broken this support.
The analysis showed that Bitcoin finally broke below the support line on June 18, when the price reached $65,152 after a 2% decline.
Source: TradingView
The Relative Strength Index (RSI) also indicated that it was stuck below the neutral line, indicating a strong bear trend at the moment.
While the sentiment of the Fear and Greed Index remained positive at the current price, it could fall if Bitcoin’s price continues to decline.
Ethereum’s effects on the index
The price development of Ethereum showed that it has fallen in recent days. However, unlike Bitcoin, the support level has remained despite the declines.
The chart indicated that Ethereum fell less than 1% on June 18, with the price falling to around $3,482. At the time of writing, the stock is up over 1% and trading at over $3,500.
Source: TradingView
Read Bitcoin’s [BTC] Price forecast 2024-2025
Although the price of BTC has fallen and the Fear and Greed Index could decline, the overall price trend has helped keep the price balanced thus far.
However, given BTC’s dominance, a further drop in price could send the index into panic mode.