Key Takeaways
- Ethereum’s Death Cross: Ether (ETH) has observed its first death cross in two weeks since 2022, a significant pattern often associated with a ~40% price drop.
- Downside Risks: Currently trading below pivotal trendlines leaves ETH vulnerable to future declines.
- Bullish Potential: Despite the bearish signals, strong network usage and increasing transaction volume point towards potential upside.
Ethereum’s Recent Movement
Ethereum has recently caught the attention of traders as its native token, Ether (ETH), printed its first "death cross" on the two-week chart since the bear market of 2022. This technical indicator, which occurs when a short-term moving average (in this case, the 20-period exponential moving average or EMA) falls below a long-term moving average (the 50-period EMA), has historically signaled trouble for ETH.
Historical Context of Death Crosses
The bearish crossover on the two-week chart has raised eyebrows given its historical implications. In mid-2022, for example, a similar death cross led to an alarming 40% decline in Ether’s valuation. Observing the current structure, It appears that the recent death cross follows a familiar pattern: a strong local top, extended consolidation, and a subsequent breakdown manifested in lower highs.
In the past and present scenarios, Ether initially closed below its 20-period EMA, followed suit by breaching the 50 EMA, culminating in a local bottom. Attempts to reclaim these levels proved challenging, resulting in persistent resistance.
Current Price Trends and Indicators
As of June 2025, ETH continues to grapple with breaking through the 20 and 50-period EMAs, despite multiple efforts to do so. This consistent rejection signifies ongoing downside risks, with the possibility of declines targeting the Fibonacci level of around $1,835 from the 2021-2022 timeframe as a potential support floor.
A successful retaking of the 20-period and 50-period EMAs might increase the chances of ETH rallying toward projected price ceilings in the $3,500 to $4,000 range, corresponding with Fibonacci targets. The price rise since May has been particularly noteworthy due to it being the strongest volume activity since the recovery phase of the previous bear market in July and August 2022.
Strong Fund Inflows
Moreover, Ether has seen significant inflows into investment funds, the highest volume recorded since 2021. In 2025 alone, Ether funds have netted $2.43 billion, reflecting interest from both retail and institutional investors. With total managed assets now around $14.29 billion, these inflows paint a picture of increasing confidence within the crypto space.
Ethereum Network Activity
The uptick in trading activity is also supported by the Ethereum network’s growing utility. On June 24, the network recorded an impressive 1.45 million successful transactions, the highest count since January 2024, according to Nansen. This surge signals a robust revival in interest from various market participants, extending beyond mere speculative trading.
One critical factor driving this functionality is an increase in utility demand from decentralized applications (DApps), DeFi protocols, and layer-2 interactions, alongside heightened staking participation. This vibrant activity could bolster Ethereum’s value proposition moving forward.
Future Outlook
Should these trends continue, the synergy of strong network activity, combined with historical price patterns and technical indicators, may set the stage for a more sustained recovery. Whether Ethereum can navigate through the current turbulence and reclaim its upward momentum remains a topic of discussion for analysts and enthusiasts alike.
This article is for informational purposes only and does not qualify as investment advice. All investment and trading activities involve risk, and readers should engage in their own research before making financial decisions.