The Federal Reserve's rate hike cycle is nearing its end, but market sentiment remains highly divided. ETH surged 7.54% today to $2,247, with a 24-hour trading volume of 1.16 billion USDT, indicating strong capital inflow. However, the Fear & Greed Index is only at 17, in the extreme fear zone.

This divergence is quite interesting. From a macro liquidity perspective, recent fluctuations in U.S. Treasury yields suggest that concerns about inflation and economic recession still persist. Although the DXY has pulled back from its highs, the dollar remains relatively strong, putting pressure on risk assets.
However, ETH's performance tells us a different story. Institutional funds may be accumulating on dips, especially considering the improving fundamentals of the Ethereum ecosystem and upcoming technical upgrades. When retail investors panic, smart money often quietly accumulates positions.
From a global liquidity cycle perspective, we are at a critical turning point. Central bank policy easing is only a matter of time, and the crypto market tends to react in advance. As the infrastructure of decentralized finance, ETH usually performs more prominently when liquidity returns.
This current combination of "price rise + panic sentiment" has historically often signaled a bottom. However, short-term volatility will still be significant, and the key is to watch the pace of macro environment changes.