Market psychology and its impact on Ethereum (ETH) prices
The cryptocurrency world has increased the volatility of the market as many of the intestines buy the idea that new cryptocurrencies will surpass. ; Psychology and its effects on Ethereum (ETH) prices.
** What is market psychology?
Market psychology is a field of study. Investor,
the role of emotional agents
Emotional pathogens are events or experiences that cause a strong emotional reaction of investors. In the context of market psychology, these pathogens may include fear, greed, excitement and despair. For example:
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- Greed:
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Effect on Ethereum (ETH) prices
Ethereum (ETH), the second largest cryptocurrency based on market capitalization after Bitcoin, has historically been determined by technical and key factors. However, market psychology plays an important role in shaping its prices.
* fear and greed : Investors often bought the idea that ETH would become more valuable because it would become more widely accepted.
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Effect on market moods
The mood of the market is an essential aspect of market psychology. When and vice versa, when investors are optimistic about ETH future prospects, they may be more likely to buy at higher prices.
* rising prices
: Increase in demand
* Sales Pressure : Conversely,
Case Analysis: Ethereum (ETH) Market Psychology
ETH prices, let’s look at the example of the latest story. 2017 October The high cost of all time is $ 1,400, only with a decrease in a speculative bubble only more than 80%.
* fear and greed : The sudden collapse of prices was partially led to fear and greed. Investors who have acquired the idea that ETH will become more valuable because it gained the main adoption was suddenly forced to sell when prices have fallen.
* Rising prices : This purchase pressure helped maintain the price of ETH and maintain the market mood.