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Ethereum forms a death cross for the first time since 2022, signaling possible short-term bearish momentum.
Strong on-chain activity and institutional inflows suggest long-term strength despite near-term risks.
Key support at $1,835 could prevent a major crash if ETH holds above current levels.
Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is once again flashing a technical pattern that has worried traders in the past. Known as the "death cross," this pattern has reappeared on Ethereum's two-week chart for the first time since 2022. This formation is often considered a bearish sign and can signal a potential downward trend.
As of June 27, 2025, Ethereum trades around $2,476, showing weakness in price action and sparking concerns about another market crash similar to what was witnessed three years ago.
A death cross forms when a short-term moving average (like the 20-day EMA) falls below a longer-term moving average (like the 50-day EMA). This suggests that recent prices are weaker compared to historical trends, signaling that the market could be shifting from a bullish (positive) phase to a bearish (negative) one.
In simple terms, it means that sellers are beginning to take control, and a price decline could follow if the pattern plays out. Many traders use this signal to predict upcoming drops in price.
The last time Ethereum displayed this pattern was in May 2022. At that time, ETH was trading around $1,750. After the death cross occurred, the price fell rapidly, dropping to about $1,150—a loss of roughly 34% in just a few weeks. That crash was part of a wider sell-off in the crypto market, caused by a combination of rising interest rates, global economic uncertainty, and reduced investor confidence.
The return of the death cross now raises concerns that a similar decline might happen again in 2025.
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This week, Ethereum has lost about 2%, and over the last month, it is down nearly 8%. These losses, combined with the recent death cross, are causing many traders to become cautious.
Analysts say that if ETH continues to fall, it could revisit the key support level of $1,835. This number is based on previous historical data, and it also matches levels found in Fibonacci retracement calculations, commonly used by traders to predict support zones. If the price reaches this level, some believe it could stabilize and attract new buyers.
Despite the bearish pattern, Ethereum still shows signs of strength in other areas. Several fundamental indicators suggest that the underlying health of the Ethereum network remains solid:
High On-Chain Activity: Ethereum continues to process more than 1.45 million transactions per day, which is the highest level since January 2024. This shows that people are still using the network heavily.
Strong Trading Volume: Even as the price falls, Ethereum sees some of its highest trading volumes in recent months. High volume during price drops can mean buyers are active, not just sellers.
Institutional Interest: So far in 2025, over $2.4 billion has been invested in Ethereum-based funds. The total value of assets under management for ETH now stands at around $14.3 billion, showing that big investors continue to support Ethereum.
Improved Network Upgrades: The "Dencun" upgrade launched earlier this year brought down gas fees and made the network more efficient. Layer-2 platforms built on Ethereum, such as Arbitrum and Optimism, have also seen higher usage due to better speed and lower costs.
These signs suggest that even if ETH falls in the short term, it may recover quickly because demand remains strong.
Some experts are watching closely for the opposite of a death cross, called a "golden cross." This occurs when a short-term moving average rises above a longer-term average, signaling a possible bullish trend. On shorter timeframes, Ethereum is showing early signs that such a cross might happen soon. However, increased selling pressure from short-term traders is delaying this potential signal.
Currently, Ethereum needs to hold above $2,476 to maintain a chance of turning bullish shortly. If that level fails, the price could dip further.
If the death cross plays out like it did in 2022, Ethereum could fall further, possibly to around $1,835. This would represent a drop of over 25% from its current levels.
If Ethereum stays between $2,370 and $2,400, it may enter a consolidation phase. That means the price moves sideways for a while as buyers and sellers remain balanced. If the market stays calm and trading volume remains high, Ethereum could slowly climb back toward $2,500–$2,550.
If Ethereum can stay above $2,476 and break through key resistance levels at $2,600 or higher, it could begin a fresh rally. In this case, the next big target would be $3,000 or even $4,000 later in the year.
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While the short-term chart may show weakness, Ethereum’s long-term fundamentals are considered strong by many in the industry. Several developments are expected to support ETH’s future growth:
Layer-2 Growth: Networks like Base, zkSync, and StarkNet are gaining traction, helping Ethereum scale to serve more users.
DAO and DeFi Demand: Decentralized finance and community-run organizations on Ethereum continue to grow and attract attention.
Upcoming Upgrades: Future Ethereum upgrades, such as "Pectra," aim to further improve efficiency, speed, and user experience.
Additionally, Ethereum now benefits from greater institutional trust due to ETF listings, clearer regulations in major countries, and integration with traditional financial systems.
There are major differences between now and the last time Ethereum faced a death cross in 2022:
Government Support: More governments now support blockchain innovation and regulation. This creates a safer environment for long-term growth.
Mainstream Adoption: Ethereum is being used by real businesses, developers, and investors more than ever before.
Institutional Investment: Unlike 2022, Ethereum now enjoys backing from hedge funds, asset managers, and pension funds that are investing for the long haul.
All these factors suggest that even if ETH dips in the short term, it is unlikely to face the same kind of long-lasting crash that happened three years ago.
Ethereum’s recent death cross has reignited fears of a sharp correction, especially as the market remembers the steep fall seen in 2022. However, the overall situation today is more mature and balanced. Ethereum has stronger network fundamentals, higher usage, better technology, and broader investor backing.
If the price holds current levels or rebounds soon, the market could shift quickly back to a bullish trend. On the other hand, a break below critical support levels could lead to a temporary pullback. Traders and investors will be closely watching the next few days to see which direction Ethereum takes.
