The top altcoin by market capitalisation, Ethereum, recently showed a death cross on its daily chart, which indicates that the short-term moving average of the coin dropped below the long-term one.
ShayanBTC, a contributor to CryptoQuant, claims that growing exchange reserves are just another reason Ethereum bulls ought to be concerned.
The quantity of tokens held across many exchanges is increasing dramatically, according to the well monitored “Ethereum Exchange Reserve” measure. Because there is a greater chance that selling pressure will increase, this indication is usually negative.
On the other hand, a significant spike in the quantity of stablecoins available on exchanges is typically interpreted as a positive indication since it indicates increased purchasing pressure.
The top alternative cryptocurrency, according to the expert, is presently trapped in a distribution phase.
The phases of an average market cycle include the distribution, markdown, accumulation, and markup phases. In order to ensure earnings, some customers turn become sellers during the distribution phase. This stage is typified by weak price performance and somewhat muted volatility. Most people believe it to be a sign of impending bear markets.
With 30 points out of 100, the cryptocurrency is presently in the “fear” category, according to data from the “Ethereum Fear Greed Index.”
According to CoinGecko statistics, the cryptocurrency is now trading at $2,521 after rising 2.3% during the previous day. According to U.Today, poor outflows prevented Ethereum from rising once spot ETFs were introduced.
