Ethereum Risks Drop Below $2,500 as Sell Pressure and ‘Death Cross’ Emerge

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Ethereum’s worth has surged by 5% over the previous 24 hours, amid the broader market restoration. The main altcoin presently trades above the psychological $2,500 worth zone, reinforcing short-term bullish sentiment.

Nevertheless, key technical and on-chain indicators counsel that the upward momentum could also be waning.

ETH’s Technical Setup Turns Bearish

An evaluation of the ETH/USD one-day chart reveals the potential formation of a loss of life cross on its Shifting Common Convergence Divergence (MACD) indicator.

This bearish sample emerges when an asset’s MACD line (blue) breaks under the sign line (orange), signaling a shift from bullish to bearish momentum. Such a sample usually precedes important worth drops, particularly when accompanied by weakening optimistic sentiment.

As of this writing, ETH’s MACD line is about to cross under its sign line. If this occurs, the loss of life cross would affirm the brewing promoting stress and sign the beginning of an prolonged, downward pattern.

Ethereum MACD. Supply: TradingView

Moreover, ETH’s Taker Purchase-Promote Ratio is under one at press time, indicating persistent sell-side dominance in its derivatives market.

Ethereum Taker Purchase Promote Ratio. Supply: CryptoQuant

This metric measures the ratio between the purchase and promote volumes in ETH’s futures market. A worth above 1 means that extra merchants are aggressively shopping for ETH contracts than promoting, whereas values under 1 point out dominant promote stress.

The continued prevalence of taker-sell quantity means that, regardless of the value uptick, underlying demand stays weak within the ETH market.