The price of Ethereum (ETH) has plunged nearly 10% in the past 24 hours and is close to forming what’s known as a “death cross” pattern.
A death cross occurs when a securities 50-day simple moving average crosses below its 200-day simple moving average. The pattern typically indicates that short-term momentum is about to underperform the long-term average, potentially leading to a major downturn.
The 200-day average is widely viewed by traders on Wall Street as a barometer of long-term trends and bearish market sentiment. Ethereum’s sudden plunge comes amid a big pullback across the entire crypto market, with Solana (SOL) and Dogecoin (DOGE) also falling about 10% in the last day.
BTC Selloff
The steep decline in Ethereum also comes as Bitcoin (BTC), the largest cryptocurrency by market cap, has seen its price fall to $87,000, its lowest level in three months, as investors turn increasingly risk averse. The price of BTC is now down nearly 20% from the all-time high of just over $109,000 that it reached on the day of U.S. President Donald Trump’s inauguration in January.
Investors appear to be fleeing riskier assets as signs grow that the U.S. economy is slowing and inflation is marching higher. The $90,000 level marks the bottom of the range that Bitcoin had been trading in since the end of last November, and analysts warn that BTC could breakdown as low as $80,000.
Is ETH a Buy?
Most Wall Street firms do not offer ratings or price targets on Ethereum. So instead we’ll look at its three-month price performance. As the chart below indicates, the price of ETH has declined 20.17% over the last 12 weeks.
