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A bearish crossover may soon confirm, historically linked to 10 - 20% price corrections.
$2,424 is key support; Ethereum could drop to $2,070 or lower if breached.
ETH must hold support, reclaim $2,615, and break $2,745 to resume the upward trend.
Ethereum (ETH), the second-largest cryptocurrency by market cap, is showing signs of weakness even though it has been holding under the key resistance levels around $2,570. As of May 21, 2025, ETH is currently trading for $2,552.5. However, multiple indicators suggest there will be a reduction in bullish momentum and that we may eventually see a bearish reversal.
A deeper look at the daily chart reveals the early formation of a "death cross" on the MACD indicator. Along with weak derivatives market data, Ethereum is likely looking at a short-run pullback to move back to potentially below the $2,500 mark.
Ethereum is trading slightly above $2,550 after a strong rally earlier this month. The price strongly moved from the $2,000 support zone and reclaimed levels near $2,600, while briefly testing a high near $2,615.
The Fibonacci retracement levels taken from the March-May swing high/low show resistance around $2,745.8 and immediate support around $2,427.1 (the 23.6% Fib level). Ethereum is currently consolidating right above the key Fibonacci level.
However, underlying indicators reveal slowing bullish momentum, indicating that potential bearish pressures are building.
Also Read: Ethereum Could Double by June 2025 as Unilabs Hits $30M AUM
A crucial technical signal developing on the ETH chart is a potential MACD death cross. A MACD death cross occurs when the MACD line crosses below the signal line, indicating that bullish momentum is weakening and that a downward trend could begin.
As of the latest reading:
The MACD histogram is shrinking in size, indicating increasing weakness of the previous bullish move.
The MACD line is coming down toward the signal line from above, and it may cross below in the next few sessions.
If this crossover happens, it will confirm a death cross, which has historically been considered a bearish signal. Previous MACD death crosses have also commonly preceded corrections of 10-20% in markets such as this, where we see a lack of buyer interest, as ETH is at the moment.
Ethereum’s Taker Buy/Sell Ratio, currently below 1.0, adds further weight to the bearish outlook. This metric measures trader behavior in the derivatives market, specifically whether aggressive buyers or sellers are dominating.
A ratio above 1.0 indicates more aggressive buyers.
A ratio below 1.0 signals that sellers are taking the lead in futures markets.
This imbalance suggests that while ETH may have held its spot price levels, underlying demand in leveraged positions is weak. Ethereum could lose momentum and test lower support levels if this pattern continues.
Should the MACD death cross be confirmed and derivatives sell pressure persist, Ethereum may struggle to hold current support. Key downside targets include:
$2,424 – Near-term support (23.6% Fibonacci retracement level)
$2,230 – Medium-term support (38.2% retracement)
$2,070 – Psychological and 50% retracement zone
A breakdown below $2,424 could lead to a decline toward $2,027, a level that previously served as a strong support base.
While short-term bearish signals may not be encouraging, all is not lost for Ethereum bulls. A resurgence in buying momentum, which could either be driven by macro catalysts, new and positive Ethereum ecosystem development, or institutional demand, would see ETH push higher.
To invalidate the bearish perspective, ETH will require the following:
Avoid a MACD crossover, while also reclaiming upward MACD histogram bars
Push past the previous high just above $2,615
Break above the $2,745, 100% Fibonacci extension, and major resistance
If these conditions are met, the next major price point target is $2,800+, which could also be a marker for Ethereum continuing its previously established bullish trend, which began in early 2025.
Ethereum's technical framework is at a critical juncture. After a strong May, the death cross emerging on the MACD, as well as selling pressure from the derivatives market, point to caution in the short term.
Traders should closely watch the $2,424 support area. It could confirm a bearish reversal with targets below $2,100 if that breaks. Conversely, if price holds here and can reclaim a higher level, it would represent a degree of strength and could eliminate the bearish signals being developed.
Also Read: Ethereum Eyes $5K as It Rebounds, Faces Key Test at $3,100
