Recently, many friends have asked me, even though ETH has risen 1.28% today to $2,410, why is the Fear and Greed Index still at 46, in the Fear zone? This calls for a discussion on how this index is calculated.

The Fear and Greed Index is not based solely on price movements! It is a comprehensive indicator that includes seven dimensions: price momentum, trading volume, social media sentiment, market surveys, Bitcoin dominance, volatility, and Google search heat.
Take today as an example, although ETH's price rose from $2,354 to $2,410, the trading volume is only 823 million USDT, which is relatively calm; the volatility of 2.95% is not large; plus, the overall crypto market's social media discussion is not high, and people are still cautious.
It's like a student taking an exam—doing well in math alone doesn't make the overall score high if other subjects are average. The Fear and Greed Index works the same way; it reflects overall market sentiment, not just price performance.
So when you see prices rising but the index still in the Fear zone, don’t find it strange. It actually indicates that the market hasn't become overly optimistic yet, which could be a relatively healthy upward trend. Remember, extreme greed is often a top signal, while moderate fear gives us more room for reflection.