Ethereum Faces “Death Cross” as ETH Drops 5%, Sparking Bearish Concerns

Ethereum (ETH) plunged over 5% on Tuesday to $2,375, with its 50-day simple moving average (SMA) nearing a crossover below the 200-day SMA—a formation known as the “death cross.” This technical pattern suggests weakening short-term momentum and could signal a larger bearish trend. Historically, while not always accurate, this indicator tends to attract momentum traders looking to capitalize on downward price movements.

ETH isn’t alone in facing downward pressure. Major altcoins like Binance Coin (BNB), Solana (SOL), Dogecoin (DOGE), and Chainlink (LINK) have all slipped below their 200-day SMAs, reinforcing bearish sentiment. The 200-day SMA is widely considered a key long-term trend indicator, with sustained dips below it often pointing to extended downside potential.

Meanwhile, Bitcoin (BTC), XRP, Tron (TRX), Cardano (ADA), and Stellar (XLM) are holding above their 200-day SMAs, providing some stability amid the broader market downturn.

With traders closely watching Ethereum’s price action, the upcoming confirmation of the death cross could dictate short-term market direction. If the bearish pattern plays out, ETH could face increased selling pressure, pushing it toward key support levels. Conversely, a strong recovery above the 200-day SMA may invalidate the bearish outlook.

Investors are bracing for heightened volatility, as technical indicators and macroeconomic factors shape the next phase of the crypto market.