The cryptocurrency market is showing signs of renewed optimism, with sentiment steadily climbing toward “Greed” territory.
According to CoinMarketCap’s Fear & Greed Index, the reading has reached 59, up from 54 just a day earlier and 57 last week. This shift comes as the total market capitalization surged nearly 16% over the past month, hitting $3.87 trillion.
While this marks a sharp recovery from March’s “Extreme Fear” level of 15, sentiment remains below the 2024 peak of 88, signaling room for further growth.
Ethereum has been one of the main drivers of the rally, briefly crossing the $4,000 mark after gaining almost 4% in the past day and 50% over the last 30 days.
Corporate treasuries, such as BitMine with $3.3 billion in ETH holdings, and newly launched ETFs have injected more than $5 billion into the asset this month.
However, Ethereum co-founder Vitalik Buterin has cautioned that excessive leverage tied to ETH reserves could expose the market to liquidation risks, with the token’s RSI now in overbought territory at 72.26.
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In the derivatives space, market activity is heating up but not without warning signs. Open interest in perpetual futures has climbed to $790 billion, while funding rates have more than doubled in 24 hours to 0.0085%. Bitcoin liquidations totaled $32.38 million, down 11% from the previous day, yet the short-to-long liquidation ratio stands at 2.7:1 – a sign that bearish traders may be getting squeezed. Rising leverage could amplify volatility in the days ahead.
Kosta Gushterov
Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.
