Ethereum is at a critical stage as technical indicators on the daily chart suggest a potential formation of a bearish cross.
Formation of the Bearish Cross
The 50-day simple moving average is approaching the 200-day moving average, with a downward crossover likely in the coming days. This formation typically signals fading short-term momentum and increasing bearish pressure. Despite a weekly increase exceeding 10 percent, Ethereum remains below its 200-day average, currently priced at $2,462, which is up by 0.32 percent in the past 24 hours.
Market Strength and Its Impact
While technical indicators point to a weakening price structure, Ethereum's on-chain fundamentals show signs of strength. The number of ETH locked in staking contracts has now surpassed 35 million, accounting for approximately 28.3 percent of the circulating supply. This accumulation trend has reduced the tradable float, which could lead to more pronounced market reactions, both upward and downward. However, the threat of a confirmed bearish cross has caused market participants to remain cautious.
Conclusion
A confirmed bearish cross could apply further pressure on Ethereum's price despite improving fundamentals and reduced supply in circulation. Investors are focused on critical technical levels, as Ethereum's ability to regain upward momentum will depend on whether it can overcome the 200-day resistance or descend into deeper consolidation.
Ethereum faces a potential bearish signal that may influence future price movements despite positive inflation factors.
