Ethereum Shows Bearish Signal on Weekly Chart
Ethereum (ETH) is showing a technical warning that often precedes major price drops. Its weekly Moving Average Convergence Divergence (MACD) indicator has turned bearish. This signal has previously led to ETH price declines of 46% to 60% in past cycles.
The MACD is a momentum indicator used to measure trend strength and direction. It has now crossed into negative territory. The last two times this happened, in mid-2024 and early 2025, Ether lost nearly half its value within weeks.
Crypto trader Koala noted on X, “The last three times this cross turned red, ETH dropped hard. Not liking what I see here.”
Key Support Level at $4,000 Under Pressure
Ethereum currently trades near $3,900, just above a critical $4,000 support level. This level was key before the sharp 2022 collapse from $4,000 to $880. After $115 million in long liquidations this week, ETH slipped below $4,000.
Analysts say holding above $3,800 could preserve Ethereum’s broader uptrend. This may allow for another move toward new highs. However, the market remains uncertain, balancing between bullish momentum and technical weakness.
Traders Cautious Amid Mixed Signals
- Titan of Crypto advised traders to “be prepared for any scenario” as the bearish signal confirms.
- Man of Bitcoin said ETH could recover if the $3,899 support holds.
- If ETH breaks below $3,899, a deeper correction similar to past cycles may follow.
As futures leverage rises and macro volatility increases, traders are divided. Some see the current correction as a healthy reset. Others warn it could mark the start of a larger downturn.
