Ethereum (ETH) is on the verge of an important technical formation – a potential 'death cross', which could signal further price declines.
What is a 'Death Cross'?
A death cross occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, typically indicating potential bearish momentum. This signal is closely monitored by technical analysts.
Current Ethereum Indicators
Currently, Ethereum's 50-day SMA and the 200-day SMA have converged and might cross in the coming days. If the death cross occurs, it would be the first of its kind on the daily chart in months, raising fresh concerns across the cryptocurrency market. As of now, ETH is trading at $2462, up 0.32% in the last 24 hours and 10% weekly.
Future of Ethereum and Its Efficiency
Ethereum continues to evolve, with its validator architecture, which underpins the proof-of-stake security scheme, improving. Recently, Ethereum surpassed a psychological threshold: 35 million ETH are now locked in staking contracts, accounting for about 28.3% of the total supply. This could lead to higher market volatility as the available float decreases.
The uncertainty and potential death cross raise concerns among Ethereum investors, but the ongoing development of the ecosystem and high levels of staked ETH maintain interest in this cryptocurrency.
