Ethereum (ETH) is flashing a technical warning that has historically preceded major price declines. The asset’s weekly Moving Average Convergence Divergence (MACD) indicator has turned bearish, a signal that previously marked ETH’s 46% to 60% drawdowns in past market cycles.
The MACD, a momentum-based indicator used by traders to gauge trend strength and direction, has now crossed into negative territory. The last two times this pattern appeared, 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.”
Titan of Crypto added that traders should be “prepared for any scenario” as the signal becomes confirmed, while others, like Man of Bitcoin, maintained that ETH could recover if the $3,899 support holds. If it breaks, they warn of a deeper correction mirroring prior cycles.
Bulls eye key support at $4,000 besides drop
Ethereum currently trades near $3,900, hovering just above a critical $4,000 support level, the same zone that preceded its sharp 2022 collapse from $4,000 to $880. The level has once again become a key battleground after this week’s $115 million in long liquidations pushed ETH below $4,000.
While the drop triggered renewed caution among traders, analysts argue that holding above $3,800 could still preserve Ethereum’s broader uptrend and set the stage for another push toward new highs.
The market’s current uncertainty underscores Ethereum’s delicate balance between bullish momentum and technical weakness.
As futures leverage builds and macro volatility rises, traders remain split between viewing this correction as a healthy reset or the start of a larger downturn.
Also read: Ethereum Leads 2025 Developer Growth With Over 16K New Builders
