Ethereum is approaching a critical juncture as technical indicators on the daily chart suggest a potential death cross formation. The 50-day simple moving average has moved closer to the 200-day moving average, with a downward crossover likely in the coming days.
A death cross formation is usually a sign of fading short-term momentum and the increase of bearish pressure. In spite of a weekly increase that exceeds 10 percent, Ethereum has been fixed below its 200-day moving average at 2,544. It is now at a price of 2,462, which is slightly up by 0.32 percent within the past 24 hours.
Recent price movements indicate that Ethereum is still having difficulties surmounting resistance. The current technical configuration can change the mood of investors if the moving averages verify the crossover results. This bearish sign was last seen in February, and a similar occurrence may also indicate that there is a downside risk in the market.
Source: Tradingview
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On-Chain Strength Emerges as Market Eyes Price Reaction
While technical indicators point to a weakening price structure, Ethereum’s on-chain fundamentals are showing signs of strength. The number of ETH locked in staking contracts has now crossed 35 million, amounting to approximately 28.3 percent of the circulating supply.
This accumulation trend has reduced the tradable float, with another 19 percent held in long-term wallets. The tighter supply could result in more pronounced market reactions, both upward and downward, as liquidity thins.
Additionally, Ethereum’s validator architecture continues to mature quietly in the background. This development strengthens its proof-of-stake security model and supports the network’s resilience despite ongoing price challenges.
Still, the threat of a confirmed death cross has caused market participants to stay cautious. Traders are closely watching whether ETH can reclaim the 200-day SMA or fall back toward the support zone between $2,000 and $2,100.
Conclusion
A death cross-confirmation could pressure Ethereum’s price further despite improving fundamentals and reduced supply in circulation. Investors remain focused on the critical technical levels, as Ethereum’s ability to regain upward momentum will depend on whether it can overcome the 200-day resistance or descend into deeper consolidation.
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