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Ethereum (ETH): From Death to Golden Cross, Chart Shows Possibilities

Mon, 09/04/2023 - 12:20
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Arman Shirinyan
Second-biggest cryptocurrency on market not in worst position right now
Ethereum (ETH): From Death to Golden Cross, Chart Shows Possibilities
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Ethereum's recent journey through a death cross has left traders and investors with mixed feelings. Currently Ethereum is changing hands at approximately $1,634.86, a price point that has been scrutinized for its potential implications. But here's the twist: the death cross, despite its ominous name, is not necessarily the harbinger of doom it is often made out to be.

The death cross is often viewed as an ultimate bearish signal. It occurs when a short-term moving average crosses below a long-term moving average.

Yet, Ethereum's trading history suggests that both golden crosses (the opposite of death crosses) and death crosses can be misleading. They are not the be-all-end-all indicators many consider them to be. In fact, they often serve as mere blips in the grander scheme of market movements.

Source: TradingView

Now, let's delve into the liquidity aspect. Ethereum, like many other cryptocurrencies, has been grappling with a lack of market traction. The volume and liquidity are not exactly painting a rosy picture. However, this is not a fundamental issue with Ethereum itself but rather a symptom of broader market conditions.

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On the flip side, Ethereum has been showing signs of life in other areas. For instance, its Total Value Locked (TVL) has been on an upward trajectory, indicating that the network is far from stagnant. This suggests that the fundamentals are strong, even if the market indicators are currently less than ideal.

So, what's the takeaway here? Ethereum's recent death cross does not spell disaster. It is merely a chapter in a longer narrative that includes other factors like liquidity, volume and fundamental strength. While the market may be in a state of flux, Ethereum's underlying technology and adoption metrics are robust.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.