Even though the prices of Bitcoin and Ethereum are starting to show signs of stabilizing, the crypto market is still struggling to fully shake off the fear that dominated much of April. According to Alternative.me’s latest Crypto Fear & Greed Index, the market is at 26 and sentiment remains in the fear zone. This is slightly better than last month’s extreme fear number of 8.
Traders are no longer panicking, but they are panicking. Also, I’m not very confident Deciding that recovery is safe, they dive headfirst into Bitcoin and Ethereum.
Fears have eased, but investors are still not relieved.
The cryptocurrency market was launched in May 2026. persistent state of anxietyand the Fear and Greed Index graph shows how fragile the recovery is. In early April, the index was at deep scary levels, hovering around 8-12 in the first week. This number comes as there was a strong sense of caution across the market as Bitcoin and Ethereum struggled to recover from previous selling pressure.
According to Data from Alternative.me, The Crypto Fear & Greed Index on May 1st was 26, down 3 points from 29 the previous day.
Index of fear and greed. Source: Alternative.me
Sentiment gradually improved through the middle of the month, rising to the 20s, but briefly rose to 46 and 67 on April 23 and April 27, respectively. These two spikes were important because they showed that traders were starting to react to the price rebound when Bitcoin rose above $78,000.
However, the index has now fallen to 26, meaning the market was unable to maintain the strong momentum seen last week. The rise from 8 to 26 suggests extreme panic has eased, but the drop last week from 39 to 26 suggests confidence is still not strong.
Cryptocurrency Fear and Greed Index. Source: Alternative.me
Can Bitcoin and Ethereum recover?
Bitcoin recorded a 12% rise throughout April, but the macro background And profit determination That momentum prevented it from converting into sustained bullish sentiment. Nevertheless, Bitcoin was stronger in its recovery attempt in April.
At the time of this writing, Bitcoin is trading around $77,000 and recently came close to topping $80,000 on Monday, April 27th. before you lose momentum. This rejection explains why fear remains high. Markets still need evidence that the rebound can survive beyond short-term relief buying. A clean break above $80,000 would likely change the tone of sentiment and the Fear and Greed Index could start turning positive.
Ethereum’s position is even more complicated. ETH is trading at $2,274, up about 1% in 24 hours at the time of writing, according to CoinMarketCap data. it shows some short-term recovery; However, Ethereum has not yet led the market like Bitcoin.
While Bitcoin has benefited from increased ETF inflows, Ethereum has seen lower and more uneven inflows. For Ethereum to recover properly, Bitcoin may need to stabilize first It will break above the resistance at $2,300. From here, the major altcoins are After prices recovered in May.
Featured image created by Dall.E, chart on Tradingview.com
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