Crypto Traders Bet $600M on Ethereum (ETH) Price Rally Despite Market FUD

Recent price action has sparked fears that Ethereum (ETH) price could lose the $1,600 support for the first time in six months. On-chain analysis examines vital data trends suggesting bullish traders could capitalize on the growing market FUD.

After breaking above the $2,000 mark in mid-July, Ethereum’s (ETH) price has entered its second consecutive month in decline. Despite Grayscale’s recent Spot ETF appeal victory, the prevailing sentiment in the crypto markets has been dominantly bearish. On-chain analysis examines how strategic crypto traders could flip the script by capitalizing on the extreme market Fear, Uncertainty, and Doubt (FUD).

Crypto Investors’ Sentiment is Approaching Extreme FUD Levels

After nearly two months in decline, the majority of crypto investors are now expressing bearish sentiment. According to Santiment – a crypto data analytics firm, bearish takes have dominated the crypto market discourse in September.

But interestingly, historical trends suggest this is a tell-tale sign that the market is approaching a turning point.

The Social Volume chart below illustrates that “Bear Market” mentions have exceeded “Bull Market” on every trading day since August 31.