Ethereum Deadly Bearish Cross Threatens 58% Crash 

The second largest cryptocurrency by market cap, Ethereum has failed to hold above $3,000, but a bigger threat to the asset has appeared. A bearish cross of a key metric is likely to show up, with a potential to cause a 58% crash in its price.

An analyst shared his opinion on X, where he said a monthly bearish Moving Average Convergence Divergence (MACD) crossover looms, adding that such a cross has in the past led to a 58% crash in the price. 

On the flipside, the cross may not happen, as according to the analyst, a similar bearish cross was about to happen in Q3 2024 but turned out to be a fakeout. This means there’s a chance that the cross will not happen and Ethereum could be fine, at least in the short term.

Ethereum on the Brink of a Major Fall

The MACD is a technical indicator that tracks price trends and measures momentum to help traders determine entry and exit points in their trades. A bearish cross is a situation in which the  shorter timeframe moving average crosses below the longer timeframe moving average, indicating the onset of a potential long term bear market following an upward trend reversal.

Ethereum is currently in a bullish structure which remains valid as long as the price holds above $1,700 – $1,800. Currently, the asset is trading at $2,925, safely above the critical support level. However, like other crypto assets, the momentum for Ethereum is weakening, making it more difficult to hold above this level, thus exposing it to more risk of a plunge.

The price has failed to make progress upward despite whales buying the coin through its exchange traded funds (ETFs). This has become a major concern to analysts and traders. Because of this weakness, analysts say the price could crash to $2,000 if it loses its critical support at the 200 exponential moving average (EMA).

Will Ethereum Hold or Break?

Ethereum’s situation is already dire, but the threat of a 58% crash is unprecedented. If the bearish cross happens and the asset crashes so deep, it may take a long time before it is able to recover given the current weak momentum.

The only escape is if the looming cross turns out to be a fakeout as was the case in 2024. Otherwise, the bear market may just be getting started for the second largest crypto asset by market capitalization.

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