Technical analysis is flashing several warning signs to altcoin bulls, with the ETH/BTC exchange rate falling below support and on the verge of falling into a death cross technical pattern. The options market shows that investors are taking the hint. Note: A death cross occurs when a short-term moving average crosses below a long-term moving average, signaling a potential long-term bearish momentum shift.
According to data from TradingView, the ETH/BTC exchange rate’s 50-week simple moving average (SMA) appears likely to cross over its 200-week moving average. The impending death cross suggests risk aversion or long-term underperformance of ETH and other altcoins relative to BTC.
The ETH/BTC exchange rate is down nearly 10% this year to 0.048. (CoinDesk)