Ethereum Price Decline and Death Cross Pattern

Ethereum price has declined for three consecutive days, forming a death cross pattern that risks a drop to $1,500.

Ethereum (ETH) fell to $2,430 on Wednesday, down more than 40% from its highest level in November. The asset has underperformed compared to Bitcoin (BTC) and other major altcoins as ETF inflows slowed and ongoing challenges within the ecosystem continued.

Data from TokenTerminal indicates that the fees generated by Ethereum have been declining. Last week, the network earned $9.8 million, a stark contrast to last year’s weekly high of over $217 million. Networks such as Tron (TRX), Jito (JTO), Solana (SOL), and Uniswap (UNI) have surpassed Ethereum in fee generation this year.

Additionally, Ethereum’s presence in decentralized finance has weakened, with total value locked dropping 12.5% in the past month to $54.32 billion. Despite this, it remains the largest player in the sector, with the stablecoin market capitalization increasing to $121 billion.

Furthermore, Ethereum has lost market share to its layer-2 networks, such as Base, Arbitrum, and Optimism, which now handle substantial transaction volumes. In the past week, Base managed over $7.4 billion in cryptocurrency volume, while Arbitrum recorded $5.7 billion—previously, this volume would have gone through Ethereum.

Ethereum Price May Crash to $1,500

The daily chart indicates a series of lower lows and lower highs in recent weeks. The price has plummeted from $4,000 in November to $2,400, forming a death cross pattern as the 200-day and 50-day moving averages intersect.

Moreover, Ethereum has fallen below the 61.8% Fibonacci retracement level, a typical zone for pullbacks. It has also dropped below the oversold level of the Murrey Math Lines indicator.

Consequently, there is a risk of Ethereum dropping around 35% to $1,530, marking its lowest price since October 2023. The chances of this significant crash increase if Ethereum dips below the current support level at $2,130, the lowest point reached in August.

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