Ethereum Price Crash to $2,000 Looms Amid 2024’s First Death Cross
Ethereum price started the fresh week with a 4% jump to $2520 during the U.S. trading session on Monday. The bullish momentum projected a fresh relief rally among most major altcoins following Bitcoin’s price struggle to regain $60000. However, this reversal has yet to pick momentum and the looming bearish signals for ETH signal for extended downfall.
Ethereum Price Faces 22% Drop Amid Death Cross Formation
Last week, the Ethereum price showed a notable reversal from $2820 to $2400, registering a 14.9% loss. This bearish turnaround showcased the price sustainable below $2800, a level that acted as major support for the past five months.
The indicated short-term market sentiment shifted from buying on rallies to selling on dips. The ETH price trading below the daily Exponential Moving Averages (20, 50, 100, and 200) indicates the path to least resistance is down. Additionally, the first death cross between the 100-day and 200-day EMAs in ten months could significantly increase selling pressure among traders.
Therefore, if the bearish momentum persists, the Ethereum price prediction may drive a 22% fall to an ascending trendline, the dynamic support intact since mid-June 2022. A bearish breakdown below this support would market a major reversal and lead to a prolonged correction trend.
According to the Santiment data, the Ethereum supply on the exchange has witnessed a continuous surge since January 2024, reaching around 20.9 million ETH by the press time. Historically, a rising supply on exchanges has correlated with downward pressure on price as holders may anticipate upcoming corrections and are positioning themselves to liquidate their holdings.
The potential retest to the long-coming support trendline would be pivotal momentum for ETH holders as the previous triggered a massive recovery. Moreover, the Average Directional Index (ADX) —32% entering the higher values often indicates the prevailing trend gave the majority of hits.
Thus, the Ethereum price holds a high potential to rebound and spark a fresh recovery trend.
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