Ethereum’s Bearish Death Cross Loses Power as Market Momentum Shifts

Ethereum appears to be defying one of technical analysis’ most widely watched bearish indicators, with the recent 50-day and 200-day moving average death cross failing to trigger the expected downside. For weeks, traders anticipated further weakness as the shorter-term average drifted toward the longer-term trendline. While the cross finally printed, ETH price action has not followed the typical bearish script. Instead, momentum has begun shifting earlier than the indicator could reflect, a pattern often seen in classic death-cross fakeouts.

Historically, Ethereum has produced some of its strongest rally setups following these misleading crosses — not because the signal has predictive value, but because trader positioning becomes heavily skewed. When the majority expects continuation to the downside, even a modest bullish reversal can force rapid repositioning. This imbalance, combined with thin liquidity and modern algorithmic strategies, reduces the reliability of both the death cross and its bullish counterpart, the golden cross. Although these indicators may not forecast price direction with the clarity they once did, they still influence sentiment, trigger liquidations and shape short-term volatility.

At the moment, ETH is retesting the underside of the 50-day EMA, with the Relative Strength Index pushing back into the mid-50s and volume beginning to build. These signs suggest buyers are stepping in earlier than expected, increasing the probability that the bearish signal will be invalidated. If Ethereum manages to break into and hold the key $3,350 to $3,500 resistance zone, the 50-day moving average is likely to turn upward again. Such a shift would erase the death-cross impact and could set off a wave of short covering, liquidation-driven spikes and renewed momentum buying — conditions that often fuel strong upside extensions.

This evolving setup underscores how rapidly market dynamics can neutralize traditional signals, reinforcing the idea that sentiment and positioning now play a larger role in Ethereum’s price trajectory.