Ethereum Defies Death Cross as Market Sentiment Shifts

Ethereum (ETH) has officially confirmed a death cross, with its 50-day moving average crossing below the 200-day moving average, a bearish signal that typically suggests downward momentum. However, ETH has shown resilience despite this technical formation and a recent $1.4 billion hack on Bybit.

The security breach at Bybit triggered significant ETH outflows, causing initial panic. However, CEO Ben Zhou reassured investors that the exchange's assets remain secure, stabilizing sentiment. Additionally, on-chain data reveals increased ETH trading activity on decentralized exchanges, driving short-term demand.

The psychological $3,000 level is now a crucial resistance point. If ETH breaks above this, it could invalidate some bearish implications of the death cross. However, failure to sustain momentum may lead to a pullback to $2,700 or lower, especially if overall market sentiment weakens.

Meanwhile, Bitcoin (BTC) is showing strong bullish signals. The 20-week SMA has crossed above the 50-week SMA, historically preceding major uptrends. BTC is currently trading above key support levels at $74,000 and $91,000, reinforcing bullish momentum. If Bitcoin maintains its position, it could rally toward the $100,000 mark.

The Bybit hack also reignited debates on Ethereum’s security, with Tim Beiko confirming that Ethereum cannot roll back transactions, unlike the 2016 DAO hack. The hacked funds were moved instantly, preventing any intervention.

Despite uncertainty, ETH’s unexpected strength suggests traders are still optimistic. The next few days will determine whether Ethereum can maintain its rally or succumb to bearish pressure. Investors should watch key resistance and support levels closely.