Ethereum Price Forms Death Cross Pattern, Whales Continue Selling

Ethereum’s price has formed a death cross pattern, signaling a potential further decline as whales continue to sell their tokens. The cryptocurrency dropped to $2,600 on Thursday, down over 35% from its highest level in December last year.

This decline occurred despite the network’s continued growth, with weak demand among investors contributing to the downward momentum. Spot Ethereum exchange-traded funds (ETFs) saw net outflows of $40.95 million on Wednesday, bringing the cumulative inflows to $3.1 billion.

Whale Selling Continues

There are signs that some Ethereum whales have continued to dump their tokens, with one big whale depositing 20,000 tokens worth $52.8 million to Kraken. The same whale sold 20,000 tokens in January and now has tokens worth $134 million remaining.

Whale selling is often seen as a negative catalyst for a cryptocurrency, as these investors are considered more experienced and sophisticated. Their actions can influence market sentiment and contribute to downward price momentum.

Ethereum Loses Market Share

Ethereum has also continued to lose market share in key areas, including fees. According to recent data, Ethereum has earned $179 million in fees this year, but has been overtaken by other popular blockchain networks, such as Circle, Solana, Jito, Tron, and Tether.

Technical Analysis: Death Cross and Double-Top Pattern

The ETH price chart has formed a death cross on the daily chart, with the 50-day and 200-day Exponential Moving Averages crossing each other. This cross is one of the most bearish chart patterns in technical analysis.

The coin has also invalidated the formation of an inverse head and shoulders pattern when it crashed below $2,821, which would have been its right shoulder. Additionally, Ethereum has formed a double-top chart pattern at $4,100, with a neckline at $2,140.

These technical indicators suggest a risk of a strong bearish breakdown, with the initial target at $2,140, the double top’s neckline, about 20% below the current level. A drop below that level could point to more downside, potentially to $1,530, the lowest swing in November last year.

Rebound Above 200-Day Moving Average

On the flip side, a rebound above the 200-day moving average at $3,090 will invalidate the bearish view and point to more upside. This could be a key level to watch for Ethereum investors and traders.

Tips for Ethereum investors:

  • Monitor the 200-day moving average at $3,090 for a potential rebound.
  • Be cautious of whale selling and its potential impact on market sentiment.
  • Keep an eye on Ethereum’s market share and fees, as these can influence the cryptocurrency’s overall performance.

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