Ethereum (ETH) has shed 25% this week as it collapsed from a high of $2,930. The brutal sell-off has pushed ETH price to revisit the $2,000 psychological level. This downtrend is due to Bitcoin’s (BTC) nosedive that has pushed it below $80,000 for the first time since November 2024. The bearish sentiment and fears of a bear market are emphasized even more for Ethereum price due to the formation of Death Cross, a well-known sell signal. Additionally, investors who bought ETH a year ago are also facing huge losses, as noted by the MVRV indicator, which has dipped to 2022 levels.
Let’s explore what this means for Ethereum price.
ETH Price Collapses to $2,000 Amid Bitcoin’s Selling Spree
Since February 21, Bitcoin has shed 20.55%, and Ethereum has crashed 25%. As a result, the 50-day Moving Average (MA) has slid below the 200-day MA, forming the Death Cross. This sell signal shows that the short-term momentum is collapsing faster than the slow MA, suggesting a shift in outlook favoring bears.
The 25% crash over the week has pushed ETH price to sweep equal lows at $2,100, set up on January 1 and August 5, 2024, respectively. Since the $2,000 psychological level is just below where price currently trades, a potential recovery for Ethereum here wouldn’t be unlikely, especially if the market cools off.
However, Bitcoin’s sell-off needs to stop for ETH to bounce off the $2,000 psychological level.
ETH Holders Underwater as MVRV Hits 2022 Leves
Santiment’s 365-day MVRV reads -32%, which shows the average profit/loss of investors who purchased ETH a year ago is at -32%. This level was seen at the depths of the 2022 bear market, showing that this ETH price crash has surprised many investors.
ETH Whales Buy As Retail Investors Panic Sell
During times of intense market sell-off, retail investors tend to panic sell or fail to buy the dip. On the contrary, whales or institutional investors tend to be buyers during these times. Wallets holding 1,000 to 10,000 ETH accumulated roughly 120K Ether worth $240M since February 21, further highlighting this narrative.
What’s Next for ETH price?
ETH price has had a bad reputation due to its lackluster performance in 2024, and to add to its woes, the power struggle happening at the Ethereum Foundation involving Vitalik Buterin and Aya Miyaguci. From a technical perspective, Ethereum recovery is unlikely until the crypto market cools off. Even if Bitcoin stops crashing, Ethereum price is unlikely to bounce back compared to some altcoins like Sonic (previously Fantom) due to the aforementioned events taking place at the Foundation.
For now, the key support level to watch if $2,000 gives in is $1,632. This barrier is where the most volume was traded between June 2022 and November 2023.
On the other hand, if $2,000 holds, then the next key level is $3,000. In addition to being at the psychological level, this level is where the Death Cross appears, a confluence of the 50-day and 100-day MA. Hence, $3,000 will be a tough resistance level to overcome.
The post Ethereum (ETH) Price Flashes Death Cross After 25% Crash as MVRV Hits 2022 Levels appeared first on CoinGape.
