Ethereum’s native token, Ether (ETH), has printed a death cross technical pattern versus Bitcoin (BTC) for the first time since May 2022, suggesting more pain ahead for ETH/BTC in the coming weeks.
Previous ETH price death cross preceded 27.5% drop
A death cross appears when an asset’s short-term 50-period moving average moves below its long-term 200-period moving average. Such a chart pattern was seen in December 2007, foahead of the global economic crisis.
Similarly, the ETH/BTC’s previous death cross in May 2022 preceded an approximately 27.5% price correction, dropping in parts as investors reduced exposure to altcoins and sought safety in Bitcoin amid the Terra collapse.
The latest ETH/BTC death cross could lead to a similar short-term selloff, primarily due to the U.S. Securities and Exchange Commission’s crackdown on crypto staking services. Staking is a key feature of many blockchains, including Ethereum.
Related: Why is Bitcoin price up today?
Meanwhile, capital flows to and from Bitcoin and Ethereum-based funds also reveal BTC gaining the upper hand. Interestingly, Bitcoin-based investment funds have attracted $183 million in 2023 compared to Ethereum’s $15 million, per CoinShares’ latest weekly report.
Next targets for ETH/BTC
The next potential targets to watch for ETH/BTC are best visible on the weekly chart.
Namely, the 0.067-0.065 BTC area, which has served as a strong support level in recent history. A successful rebound here could have ETH price rebound toward its multi-month descending trendline resistance (black) near 0.075 BTC.
Conversely, a decisive break below the 0.067-0.065 BTC range could have ETH enter an extended selloff toward the 200-week exponential moving average (200-week EMA; the blue wave) near 0.055 BTC, down about 20% from current price levels.
Notably, the 200-week EMA served as a bottom to the November 2021-June 2022 bear cycle.
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