Ethereum’s ‘Death Cross’ Signals Potential Price Decline
Ethereum‘s native token, Ether (ETH), has formed its first ‘death cross’ on the two-week chart since the 2022 bear market. This technical pattern occurs when the 20-period exponential moving average (EMA) crosses below the 50-period EMA, historically signaling potential price declines. The current setup closely resembles the 2022 scenario that preceded ETH’s 40% drop.
Understanding the ‘Death Cross’ Pattern
In technical analysis, a ‘death cross’ indicates potential bearish momentum. For Ethereum, this two-week chart formation warrants attention as it mirrors the conditions preceding the 2022 price correction.
Current Market Conditions
ETH currently faces resistance at key trendlines. Repeated failures to break above these levels increase downside risks, with $1,835 emerging as a potential support level based on Fibonacci retracement from the 2021-2022 cycle.
Network Fundamentals Remain Strong
Despite technical concerns, Ethereum network activity shows resilience. The network processed 1.45 million transactions on June 24, reaching its highest daily volume since January 2024.
Market Outlook
While the ‘death cross’ suggests caution, Ethereum‘s robust network fundamentals may provide counterbalance. Market participants should monitor both technical indicators and on-chain metrics for clearer direction.
