Ethereum (ETH) Bulls Face More Than Just the Death Cross: What to Watch Out For
Ethereum, the primary alternative cryptocurrency by market capitalization, recently underwent a significant event known as a death cross on its daily chart. This occurrence signifies that its short-term moving average has dropped below the long-term moving average.
According to insights from CryptoQuant contributor ShayanBTC, the surge in exchange reserves presents another cause for concern among Ethereum supporters. The widely monitored “Ethereum Exchange Reserve” metric reveals a notable increase in the total number of tokens held across various exchanges. This uptrend typically indicates a bearish sentiment due to the heightened likelihood of escalating selling pressure.
Conversely, a sharp rise in stablecoins on exchanges often signals a bullish trend due to the mounting buying pressure. The analyst suggests that the primary alternative cryptocurrency is presently ensnared in a distribution phase. In a typical market cycle, phases such as accumulation, markup, distribution, and markdown are observed. During the distribution phase, some buyers transition into sellers to secure profits. This phase is marked by relatively subdued volatility and lackluster price movements, often signaling the onset of another bear market.
Data from the “Ethereum Fear Greed Index” indicates that the cryptocurrency currently resides in the “fear” zone, scoring 30 out of 100 points. Ethereum is presently trading at $2,521, reflecting a 2.3% increase over the past 24 hours, as reported by CoinGecko. Despite the introduction of spot ETFs, Ethereum failed to rally as anticipated, citing underwhelming outflows.
In conclusion, Ethereum’s recent market movements, including the death cross and fluctuations in exchange reserves, have prompted mixed sentiments among investors and analysts. As the cryptocurrency navigates through different market phases, monitoring key metrics and indicators will be crucial in gauging its future trajectory and potential developments.
