Ethereum analysisView Details
The following indicators are used to calculate the CFGI for this token.
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Detailed Sentiment Analysis
Price Score sentiment
Order Book sentiment
Ethereum Fear and Greed Index Indicator explained
The Ethereum Fear and Greed Index is a multifactorial indicator for cryptocurrency sentiment analysis, which considers the most critical parameters that determine the psychology of the Ethereum market to give a result that defines the level of fear or greed in the market.
The Ethereum fear and greed index values range from 0% (extreme fear) to 100% (extreme greed). The values are:
0 - 24: EXTREME FEAR
25 - 39: FEAR
40 - 59: NEUTRAL
60 - 74: GREED
75 - 100: EXTREME GREED
The Price Score indicator is a relevant indicator to analize and assign the Ethereum price evolution a certain numerical value.
This module studies the price trend in order to know determine in a range from -1 to 1 if the Ethereum market has a bearish or bullish trend.
The main trend defines one part of the general sentiment of the market, and is a factor of weight when analyzing a chart. A pronounced and long-lasting positive trend generates a greater feeling of greed. In the same way, when the trend is negative, a greater feeling of fear is generated, regardless of other factors.
Price Volatility is also another important indicator and the biggest trigger for market sentiment. To measure it, we use values between 0 and 1 that determine the degree of current Ethereum price fluctuation for the desired time frame.
Higher volatility implies a riskier market, which further polarizes bullish and bearish sentiments. An increase in volatility implies greater greed in a bull market, but also greater fear in a bear market.
Like volatility, the Ethereum Volume is a determining factor.
An increase in the volume implies a greater negotiation in the market, which is caused by an increase in the movements caused by an interest, which is synonymous with great sentiment. A strong volume determines a strong level of greed in Ethereum bull markets, but also a strong level of panic in bear markets.
Like volatility, it is also calculated with a range between 0 and 1.
The Impulse indicator measures the current Ethereum price strength compared to previous values to determine in a range from -1 to 1 how it is affecting the Ethereum market sentiment.
Impulse has a huge impact on sentiment, as on a psychological level we tend to place more importance on the latest price move.
The strength of this shows price inclination that can be more or less pronounced and determines the polarity. A strong bullish impulse in a market implies a greater feeling of greed, in the same way that a strong bearish impulse generates a greater feeling of fear or panic.
It is proven that technical analyzes themselves influence market sentiment, especially those that are more popular.
The technical analysis indicator analyzes for Ethereum the 26 most popular stock market indicators and subdivides them into 2 main categories that differentiate them in their type of trend indicator or oscillator. Subsequently, each one of them is averaged and assigned a certain weight based on the popularity of each one. These results fairly accurately reflect the impact generated by these charts on market analysts.
Social media sentiment analysis is one of the main factors determining crypto market sentiment.
Through an artificial intelligence (IA) algorithm trained with machine learning to determine the emotional nature of a publication in a certain field such as cryptocurrencies, the latest related Ethereum publications are analyzed in the main social networks as Twitter and Reddit and a general sentiment value is calculated.
The algorithm also interprets differently all those publications with an advertising nature and treats them differently.
This other indicator takes into account the dominance of Ethereum with respect to the general market. When it gets greedy, altcoin investments greatly increase and the total market capitalization increases, which also decreases Ethereum's dominance. The same thing happens when the market panics but in reverse. For this reason, both the token capitalization and the total market capitalization are calculated.
But there is also a correlation between the dominance of Ethereum and the dominance of the main altcoins, so the indicator calculates different values for each cryptocurrency.
Trends is another factor that determines the sentiment of a particular market. We analize the search volume on Ethereum has on major search engines like Google, Bing, Yandex, and Baidu.
The lookup indicator looks at the current value and compares it to previous values to determine what particular interest there is in Ethereum. For this, specific search terms are used that determine the purchasing or ceding interest of Ethereum, thus excluding general terms that only define popularity without demonstrating negativity or possibility.
One of the analyzes that can determine the cryptocurrency market is the movement of whales.
CFGI analyzes the movements of superlative amounts made by large investors in two ways, first it analyzes large movements from wallets to exchanges of Ethereum and compares them with the large movements of stable coins that are also made from wallets to exchanges to estimate the proportion of purchase and sale to be made.
A high ratio of Ethereum moves to stablecoins indicates strong selling intent, while a higher ratio of stablecoin moves indicates stronger buying intent.
Another great predictor of sentiment through a quantitative source is order books. Crypto Fear and Greed Index analyzes the order book for Ethereum on different exchanges to determine the buying and selling pressure that contiguous orders exert on the price. In such a way that you can know the buying and selling pressure that the orders which are going to be executed will exert.Stronger buying pressure than selling pressure close to price is a clear indication of bullish sentiment, as there are more buy orders within equal distance to the price. While stronger selling pressure above price indicates a bearish sentiment, because there are more sells to execute than buys at the same distance.
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The information provided by the CFGI.io website is not financial, investment or trading advice nor should it be considered for such purpose. It is an informative tool that in no case recommends the purchase, sale or hold any cryptocurrency beyond your own decision and risk. Before taking any investment action we recommend that you consult an experienced financial advisor. If you do not have knowledge on the subject, do not use the platform as your own diligence, and in this case we recommend that you request help from a specialized and qualified person, with extensive experience in crypto markets.