Ethereum Faces First Death Cross Since 2022: What It Means for Investors
ethereum Faces Bearish “Death Cross” for the First Time Since 2022
Overview of the Death Cross Pattern
ethereum‘s price chart has recently displayed a concerning bearish signal known as the “death cross,” marking its first occurrence since 2022. This pattern typically indicates a potential downturn in asset value.
Technical Analysis of ethereum‘s Price Movement
After experiencing a decline following a recent upward trend, the 40-week and 100-week exponential moving averages have intersected on the two-week chart. The shorter-term moving average has dipped below the longer-term one, confirming the formation of a death cross.
Historical Context and Potential Impact
The last instance of this pattern in the ethereum market led to a significant drop of nearly 40% in the asset’s value. Should history repeat itself, ethereum could see its price plummet to around $1,500 or possibly lower.
Analyst Insights on Future Trends
Despite the bearish signal, analyst Michael van de Poppe remains optimistic about ethereum‘s future. He suggests that the cryptocurrency, along with other altcoins lagging behind Bitcoin, may soon experience a resurgence. Currently, Bitcoin’s market dominance has surpassed 65%, and van de Poppe believes that if Bitcoin reaches its historical peak of $112,000, it could trigger a rally in digital assets.
Seasonal Trends in Cryptocurrency Performance
Van de Poppe notes that the first half of the year is typically challenging for altcoins, while the latter half often brings better performance. He expresses hope that 2025 will follow this trend, potentially benefiting ethereum and other altcoins.
