The amount of how ethereum (ETH) saw the death cross in this indicator shortly before taking the original momentum of its full power.
Ethereum form the death cross in the financing rates earlier
In QuickTake Cryptoquant mailThe analyst shared an ethereum financing rate. Funding rates refer to a scale that tracks the amount of periodic fees exchanged by traders in the derivative market between each other at the present time.
When the value of this indicator is positive, this means that long contract holders pay in addition to short investors in order to adhere to their locations. Such a trend indicates the presence of bullish feelings by the majority of derivative derivatives.
On the other hand, the scale under the zero mark means that a declining mentality is dominant in this sector, as the palaces holders are the long overwhelming.
Now, here is the ETHEREUM financing rates published by The Quant, which shows the direction in simple moving averages for 50 days and 200 days of the index over the past two years:
Looks like these two lines saw a crossover earlier in the year | Source: CryptoQuant
As shown in the above chart, ETHEREUM financing rates for 50 days were expressed under SMA for 200 days in January this year. This indicates that optimism in the market witnessed a shift.
From the graph, it is clear that since the SMAS intersection of the index appeared, the ETH price has been moving sharply. This trend is not unique of assets, as the broader cryptocurrency sector also witnessed a similar pattern, as investors are alienated from the risks.
In the first half of last year, financing rates noticed the same type of intersection, and then, the ETHEREM price is followed with a period of declining work.
This was not until the reverse intersection occurred, as SMA found a 50 -day break over the 200 -day SMA break, which returned the bullish momentum in the cryptocurrency market. The same pattern was also seen again in 2023.
It is possible that in order to return the constructive procedures for prices to Ethereum and other assets, an upper intersection may occur in the financing rates again. “When the speculators return and start using the greedy leverage, the bull’s encryption market will start,” the analyst notes.
However, when this happens, guessing anyone, as Smas for 50 days and 200 days of the indicator is currently available. In 2024, the lines took several months before they crossed, so it could take some time until the intersection now happens.
ETH price
Ethereum moves to the end of March on a red note, as its price decreased to the level of $ 1,800, after witnessing a decrease of approximately 14 % last week.
The trend in the ETH price over the last five days | Source: ETHUSDT on TradingView
Distinctive image from Dall -e, Cryptoquant.com, Chart from TradingView.com
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