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Essential insights:
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Ethereum has recorded its initial two-week death cross since 2022, historically associated with a ~40% price decline.
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ETH encounters downward risks while remaining beneath two significant trendlines.
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Robust network activity and volume suggest bullish potential.
Ethereum’s native cryptocurrency, Ether (ETH), has displayed its first “death cross” on its two-week chart since the 2022 market downturn.
Previous death cross preceded a ~40% ETH price drop
The bearish crossover occurred when ETH’s 20-period exponential moving average (20-2W EMA; the red wave) fell below its 50-period EMA (the blue wave). In mid-2022, a similar crossover preceded a 40% drop in Ether’s price.
The sequence leading up to Ether’s death cross mirrors the 2022 scenario: a significant local peak, succeeded by a multi-month consolidation phase, followed by a gradual breakdown characterized by lower highs.
Moreover, in both previous and current setups, Ethereum first closed beneath its 20-period EMA, then descended below the 50 EMA, creating a local bottom. It subsequently tested these levels as resistance multiple times before reclaiming them.
As of June 2025, ETH was finding it challenging to surpass the 20- and 50-period EMAs despite numerous attempts.
Ongoing rejection at these moving averages maintains elevated downside risks, targeting declines towards $1,835—a Fibonacci level from the 2021-2022 period—as the next price floor.
Related: ETH trades near $2.5K, but weak demand clouds bullish outlook
A decisive reclaim of the 20-period and 50-period EMAs as support may enhance ETH’s chance of rallying towards the $3,500-4,000 price range, consistent with the Fibonacci targets.
Bolstering this outlook, ETH’s price increase since May has been accompanied by its strongest volume since July–August 2022, during the prior bear market recovery phase.
Furthermore, Ether funds have experienced their highest inflows since 2021 recently, totaling $2.43 billion thus far in 2025 and managing $14.29 billion in assets overall.
Ethereum network exhibits significant growth
The increase in trading activity reflects renewed interest from retail and institutional investors. However, the momentum appears to extend beyond simple speculation.
On June 24, the Ethereum network processed 1.45 million successful transactions, its highest daily total since January 2024, according to data source Nansen.
The current spike suggests heightened utility demand from DApps, DeFi protocols, layer-2 interactions, and staking involvement, all of which enhance Ethereum’s network value.
This could establish a foundation for a sustained recovery, aligning with both fractal and volume-based indicators, if the trend continues.
This article contains no investment advice or suggestions. Every investment and trading decision carries risk, and readers should perform their own research prior to making a decision.
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