The cryptocurrency Ethereum (ETH) is again under pressure after the appearance of a technical signal that heralded significant price falls in the past. The so-called MACD indicator, which is often used by traders to measure the strength and direction of a trend, has shown a so-called bearish cross on the weekly chart.
Below the $4,000 limit?
That signal previously meant that the price of Ether fell by tens of percent. In 2024, the currency lost more than 46 percent of its value, and even around 60 percent in early 2025. Analysts fear a similar scenario could now unfold.
The Ethereum price is currently hovering around $3,934. This means that the currency is balancing dangerously close to the important support zone of $4,000, which has been able to hold its ground since August.
According to market watchers, that level is crucial. “As long as the price remains above $3,899, a new increase is possible,” said Elliott Wave analyst Man of Bitcoin. “But a break to the downside would signal a much bigger correction.”
Trader Trader Koala was more pessimistic. He stated that Ethereum is already in a “weekly breakdown” after losing support at $4,200. According to him, the downward acceleration can start quickly.
Why the MACD is important
The MACD, short for moving average convergence divergence, compares moving averages of the price and shows whether a trend is losing momentum. When the blue MACD line crosses below the orange signal line, it is considered a sell signal.
In the past three times that this pattern became visible in Ethereum, significant corrections followed. Analyst CRYPTO Damus pointed out that the current signal “shows exactly the same situation as with previous price falls.”
History of sharp corrections
The history of Ethereum shows how sharp such corrections can be. In December 2021, the price fell below the $ 4,000 mark, after which almost 80 percent of the value evaporated in the following months. The low was then reached around $880.
While a repeat of such a decline is not certain, many traders say technical analysis provides a warning that investors should expect high volatility.
Source: https://newsbit.nl/slecht-signaal-voor-ethereum-vorige-keer-koersdaling-60/
