Recently, many people have been discussing the appearance of a 'death cross' in Ethereum. It sounds scary, but you don't need to be too nervous. The so-called death cross occurs when the short-term moving average (like the 50-day) falls below the long-term moving average (200-day). In traditional technical analysis, this is usually considered a signal that prices will continue to fall. However, this time, Ethereum's price did not follow the 'script'.

Why? Because sometimes the market can turn around early, momentum can change first, and by the time the moving averages react, the trend has already changed. Many traders see a death cross and short the market early, but if the price does not fall and instead rises, these shorts may end up getting 'squeezed'. Historically, Ethereum has also risen after several death crosses, simply because market sentiment was triggered, leading to an imbalance in positions.

The current crypto market is also different from before. With more algorithmic trading and insufficient liquidity, the predictive power of indicators like 'death cross' and 'golden cross' has decreased. They now play more of a role in influencing sentiment and short-term capital flows rather than indicating that prices will definitely rise or fall in the future.

Currently, Ethereum is testing its 50-day moving average position, and the RSI indicator has returned to the middle range, indicating that the market is regaining strength and there are signs of increasing buying pressure. If ETH can break through and stabilize around $3350 to $3500, the trend may officially strengthen. In this case, the short-term moving average will bend upward again, and the impact of the death cross will be completely offset. Some people who shorted the market early may be forced to buy back, which would further push up the price.