Ethereum’s native token has printed its first 'death cross' on its two-week chart since the 2022 bear market. This event is historically linked to significant price declines.
What is a 'Death Cross'?
'Death cross' refers to the moment when the 20-period exponential moving average (EMA) crosses below the 50-period EMA. This event on the ETH chart occurred when its 20-EMA slipped below the 50-EMA, similar to the situation in 2022 which preceded a 40% price drop.
Impact on ETH Price
Since ETH has repeatedly attempted to break above the 20 and 50-period EMAs, it has faced constant rejections, raising the risks of further declines. The next price floor is expected to be around $1,835, a level established during the 2021-2022 period.
Growth in Ethereum Network Activity
Despite price declines, Ethereum shows growth in network activity. On June 24, the network processed 1.45 million successful transactions, the highest daily count since January 2024. This suggests renewed interest from participants, which may indicate a potential price increase in the future.
The recent 'death cross' on the ETH chart may foreshadow further price fluctuations. However, the increase in network activity and trading volume could provide a foundation for potential recovery.
