Market sentiment has plummeted to freezing point. The Fear and Greed Index has fallen to 25, what does this mean? It means that most people are currently in a panic selling mode.

There have been continuous questions in the background about whether to buy the dip or to run away. Some people say, "When others are fearful, I am greedy," but while this saying sounds right, it's easy to fall into pitfalls when actually operating. I must honestly say that this line of thinking is not wrong in itself, but the key is that you must combine it with other signals; otherwise, you might end up buying at "halfway up the mountain."

Let me report the results first. During the extreme fear last year, when the index fell to 20, I judged that it was an entry window. Later, Ethereum rose from $2000 to $2800, and those who followed the operation made a good profit. In March this year, when the greed index soared to 85, I reminded everyone that it was time to take profits. As a result, the market corrected by over 500 points. This is the power of data, not some intuition or gambling.

The current situation is as follows: Ethereum is quoted at $3024.51, with 17 out of the past 30 days showing a rise, a probability of increase at 57%, and a volatility of 4.43%, which is considered moderate. Many people rush to bottom-fish at the sight of extreme fear numbers, but looking at this one indicator alone is not enough.

I have summarized four core signals to help everyone assess the current situation. The first is the direction of macro policies. The global central bank policies are now diverging; what is the attitude of the Federal Reserve, what is the European Central Bank doing, these will all affect the flow of funds. The second is on-chain data. The third is the position from a technical perspective. The fourth is the direction of the funding aspect. By looking at these signals comprehensively, one can truly determine whether this is an opportunity or a pit.