Warning for Altcoin Bulls: the Ether-Bitcoin Ratio Is About to Flash Death Cross

The ETH/BTC ratio is on the verge of slipping into a death cross on the weekly chart.

Ether underperformance could be a signal of risk aversion and reduced demand for alternative cryptocurrencies.

Technical analysis is flashing several warning signals to alternative cryptocurrency (altcoin) bulls, with the ether-bitcoin (ETH/BTC) ratio dropping below a support level and on the verge of falling into an ominous death-cross technical pattern. The options market shows investors are taking the hint.

A death cross occurs when a short-term moving average drops below the long-term moving average, signaling a potential long-term bearish shift in momentum.

The ratio's 50-week simple moving average (SMA) appears on track to cross below the 200-week SMA, according to charting platform TradingView. The impending death cross signals risk aversion or prolonged underperformance of ether {{ETH}} and other altcoins relative to bitcoin {{BTC}}.

Since 2017, the crypto market has oscillated between bitcoin-led regimes and altcoin-led regimes. More importantly, altcoin leadership has been characterized by a rising ETH/BTC ratio. In other words, traders are willing to take more risk when ether is outperforming bitcoin and vice versa.

The ETH/BTC ratio has dropped nearly 10% to 0.048 this year, TradingView data show .#ETHENALAUNCHPOOL #ETH🔥🔥🔥 #EggcellentInvestment #ENAUSDT $ETH