😱 Ethereum’s Death Cross: Can Our Favorite Crypto Comeback Kid Do It Again? πŸ™βœ¨

by

Breaking news from the crypto world, folks! A quant has spilled the beans on Ethereum‘s (ETH) latest drama: a death cross in funding rates. Yep, you read that right. And just when we thought 2023 couldn’t get any more exciting! 😱

Ethereum’s Death Cross: When Funding Rates Go Rogue 🀯

In a thrilling turn of events, a CryptoQuant analyst shared a chart that reveals the Funding Rates of Ethereum. Now, for those of you who haven’t majored in CryptoSpeak, Funding Rates are like the pulse of the derivatives market, telling us who’s feeling the love (longs) and who’s getting the cold shoulder (shorts).

When the Funding Rates are positive, it’s a lovefest for the longs, who are showering the shorts with gifts (aka premiums) to keep their positions. This signals that the majority of traders are in a bullish mood, aka “party time!” πŸŽ‰

But when the Funding Rates dip below zero, it’s a whole different story. The shorts take over, leaving the longs in the dust. This bearish mentality spreads like wildfire, and suddenly everyone’s running for the hills. πŸƒβ€β™‚οΈπŸ”₯

Here’s the chart that’s got everyone talking, courtesy of our quant friend. It shows the 50-day and 200-day simple moving averages (SMAs) of the Funding Rates over the past couple of years. Check it out:

Notice how the 50-day SMA crossed under the 200-day SMA in January? Yeah, that’s the death cross right there. Since then, ETH’s price has taken a nosedive, and the rest of the crypto world has followed suit. Risk aversion is at an all-time high, people. πŸ“‰πŸš«

Last year, we saw a similar crossover, followed by a bearish spell for Ethereum. But fear not, because history tells us that when the 50-day SMA finally breaks above the 200-day SMA, the bulls come charging back. And yes, it happened in 2023 too. 🦁πŸ”₯

According to our analyst friend, “When the speculators return and start using their greedy leverage, the crypto bull market will begin.” So, when will this glorious moment arrive? Your guess is as good as ours. The 50-day and 200-day SMAs are still far apart, and it could take months for them to cross paths again. Patience, my fellow hodlers. πŸ™β°

ETH Price: The Final Countdown? 🎢

March hasn’t been kind to Ethereum, with its price slipping to the $1,800 level after a 14% decline in the past week. Ouch. But hey, every hero has a comeback story, right? Let’s see if Ethereum can pull off another epic reversal. πŸš€βœ¨

Read More

2025-03-31 23:13