Quant revealed how Ethereum (ETH) saw the cross of death in this indicator just before the weak momentum was forced.
Ether Leeum formed a death cross at the rate of financing.
In the Cryptoquant Quicktake Post, the analyst shared a chart on Ethereum’s financing ratio. “Funding Fare” represents a metrics that track the amount of periodic fees in which traders in the derivative market are currently exchanged with each other.
If the value of this indicator is positive, it means that a long contractor pays a premium to a short investor to maintain his position. This trend suggests that most derivatives traders share strong feelings.
On the other hand, the indicators under the Zero Mark mean that the spirit of weakness is dominant in this sector because short holders overwhelm long holders.
Now, the chart on the Ether Leeum funding rate posted by Quant is as follows. This shows the trend of simple moving average (SMA) for 50 and 200 days of indicators over the last few years.
Looks like these two lines saw a crossover earlier in the year | Source: CryptoQuant
As shown in the graph above, the 50 -day SMA of Ether Leeum Fund Procedures crossed according to the SMA on January 200 this year. This suggests that the optimism of the market has witnessed a change.
In the graph, ETH prices have fallen sharply because the crossover of two SMAs on the indicator has emerged. The wider Cryptocurrency division has a similar pattern, so the trend is not unique to assets.
In the first half of last year, the financing rate was a weak time after observing the same type of crossover.
It was not until the 50 -day SMA discovered a break over 200 days, and it wasn’t until the opposite crossover occurred. The same pattern was also seen in 2023.
Constructive price measures can lead to the optimistic crossover of financing charges for revenue for Etherrium and other assets. The analyst said, “When speculators return using greedy leverage, the encryption bull market will begin.
But when this happens, everyone’s speculation is because the 50 -day and 200 -day SMA of the indicator is quite far away. In 2024, the line took several months to cross, so it could take time to create a crossover.
ETH price
Ether Leeum has ended a month with red memo in March, as the price dropped to $ 1,800 after nearly 14% decreased last week.
The trend in the ETH price over the last five days | Source: ETHUSDT on TradingView
DALL-E, Cryptoquant.com’s main image, TradingView.com chart
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