Ethereum Could Repeat Bitcoin-Like Death Cross As Number Of Addresses In Profits Shrink
As per recent Glassnode data, the Ethereum Number of Addresses in profit continues to decline, reaching lows last seen since September 2021. The Ethereum price is presently down nearly 50% from all-time highs of near $4,800 reached in November 2021.
The majority of the declines occurred in December and January amid the general market meltdown. Currently, Ethereum is down 32.37% in January as the price trades at $2,487.
Ethereum might repeat Bitcoin-like death cross
Ethereum might set a Bitcoin-like death cross as the moving averages 50 and 200 converge. Bitcoin has dropped over $12,000 since confirmation of the negative crossover earlier this month.
The last time Ethereum’s daily moving averages converged was in early August 2021. Then Ethereum managed to increase the odds of a deadly moving crossover moving higher. This culminated in a golden cross in mid-August, leading Ethereum price to all-time highs of $4,867 in November. The golden cross is the opposite of the death cross, which means that the MA 50 exceeds the MA 200.
Moving average crossovers cannot be used as standalone indicators because they are based on backward-looking data and are hence lagging indicators. The market is frequently oversold and due for a comeback when the crossover is confirmed.
Ethereum might be able to increase the odds of a deadly mobile crossover as its fundamentals remain strong.
U.Today earlier reported Ethereum’s hashrate reaching new peaks. Likewise, Ethereum’s profitability remains at 69%, according to IntoTheBlock.
Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist, sees a bullish end to the recent decline. Explain the basis of bullish market fundamentals using the law of supply and demand. He says: “According to the rules of economics, a market with increasing demand and decreasing supply will increase over time.”
Ethereum trades at $2,496 at press time.
