Signals Pro-Death Cross Formation in Ethereum Observed by Financial Analyst
Ethereum, the second-biggest cryptocurrency by market capitalization, is edging closer to a technical signal that may flag a bearish phase ahead. Known as the "death cross," this occurrence happens when the 50-day moving average (MA) dips below the 200-day MA.
As of June 14, 2025, Ethereum's price touched $2,499.42, marking a decrease from previous 24-hour values [1]. If this trend continues, the 50-day and 200-day MAs could intersect soon, potentially signaling a bearish forecast.
Bracing for a Potential Downturn
The cryptocurrency derivatives market is awash with bearish sentiment. Trade expert Gordon Grant claims this bears a connection to the suspected hack on one of Bybit's cold Ethereum wallets, causing a $1.4 billion theft. This event has sparked concerns and led to a shift in demand from call options to put options in near-term derivatives [1].
Similar trends have also surfaced in Bitcoin derivatives, where an increase in short positions can be observed [2].
Additionally, some analysts suggest that the hackers responsible for breaching Bybit have grown to become the 14th-largest Ethereum holders [1].
The downturn scenario is further supported by the continuous decline of cumulative volume delta (CVD) into negative territory, implying that selling pressure exceeds buying activity.
Meanwhile, Bitcoin's dominance index has surged to its highest level since March 2021, as altcoins struggle to compete [3]. This rise can be partly attributed to internal strife within the Ethereum Foundation and the fallout from meme coin controversies on Solana [4].
Watching the Moving Averages
While the "death cross" suggests a potential bearish trend, it's essential to remember that these technical indicators don't guarantee future price movements. The study of these indicators should be used in conjunction with other fundamental and qualitative analysis techniques.
[1] The Block, accessible at https://www.theblockcrypto.com/[2] Coinglass, accessible at https://coinglass.com/[3] CoinDesk, accessible at https://www.coindesk.com/[4] CryptoRank, accessible at https://cryptorank.io/ethereum[5] Bitfinex, accessible at https://blog.bitfinex.com/[6] CryptoQuant, accessible at https://cryptoquant.com/
- The ongoing bearish sentiment in the cryptocurrency derivatives market, spurred by the hack on Bybit's cold Ethereum wallet, has also affected Bitcoin derivatives, with an increase in short positions observed.
- The continuous decline of cumulative volume delta (CVD) into negative territory in the Ethereum market suggests that selling pressure exceeds buying activity, further supporting the potential downturn scenario.
- As altcoins struggle amidst internal strife within the Ethereum Foundation and meme coin controversies on Solana, Bitcoin's dominance index has surged, highlighting investors' preference for perceived safer cryptocurrencies like Bitcoin during bearish trends.
While keeping an eye on the potential "death cross" for Ethereum, it's crucial to remember that these technical indicators should be used in conjunction with other fundamental and qualitative analysis techniques for a more informed investment decision.
