The Ethereum price retreated slightly on Wednesday as global risks jumped and the fear and greed index declined again. ETH declined to $3,345, which was about 6% below the highest level on Tuesday. The decline brings the total market capitalization to more than $398 billion.
Fear and greed index falls
There is a sense of fear going on in the financial market today as risks rise. For one, the closely watched CBOE volatility index (VIX) has jumped by more than 10% in the past 24 hours. This index uses the options market to predict the positioning of the S&P 500 index. A higher number is usually a sign that investors are getting fearful.
Meanwhile, the fear and greed index has declined to 27. This index measures the sentiment among investors by looking at several gauges in the market like junk bond demand, VIX, stock price breadth, and put and call options. The current figure shows that investors are generally fearful about the market.
The four-hour chart shows that the Ethereum price has lost momentum in the past few sessions. The decline started when the price rose to a high of $3,547, which was slightly above the 61.8% Fibonacci retracement level.
Still, on the positive side, the coin’s bullish trend is still being supported by the 25-day and 50-day moving averages. Also, Bitcoin has stubbornly remained above the $51,000 level.
Therefore, the ETH price will likely resume the bullish trend in the near term. I suspect that it will surge to about $4,000 in October although risks remain. That would be a 20% jump from the current level and is in line with my previous ETH price prediction for October.
