Death Cross Alert for Ethereum and Altcoins!

Sona59

Although the cryptocurrency market led by Bitcoin (BTC) is experiencing a downturn, Ethereum (ETH) and altcoins are also seeing declines.

Ethereum broke through $3,200 during the bullish trend in April, but is currently hovering around $3,020, marking a decline of about X% from its peak.

While investors are hoping for an uptrend, the ETH/BTC currency pair is sounding alarms on the weekly chart.

According to Coindesk, a death cross is about to form on the weekly chart for ETH/BTC. Analysts state that the drop in the ETH/BTC exchange rate below a key support level indicates "poor performance of Ethereum against Bitcoin and may be a sign of investors hedging risk and decreasing demand for altcoins."

Although the impending death cross for the ETH/BTC currency pair suggests that Ethereum and other altcoins may underperform Bitcoin in the long term, analysts at QCP Capital have also examined the decline in the ETH/BTC currency pair.

They note a sustained and large-scale selling pressure on Ethereum:
"ETH/BTC is testing key support after breaking below 0.05.
There's continued massive selling of ETH calls, which suppresses volatility and adds downward pressure to prices.
Could this be an early signal of FOMO turning into fear of ETH as a proxy for altcoins?"

What is a death cross?
Death Cross: When a short-term moving average crosses below a long-term moving average. This crossover is considered a significant bearish signal.

Therefore, when a short-term moving average (e.g., 50 weeks) falls below a long-term moving average (e.g., 200 weeks), this pattern emerges.

It is generally considered to portend a significant price decline, and the death cross is seen as a warning for investors to be cautious.

Iti9

The price will depend on what influences there are to consider.

Jafar224

Of course, there will definitely be some impact.

Yamini003

I feel like it's definitely impacted.