Ether (ETH) has triggered a notable bearish signal on its weekly Moving Average Convergence Divergence (MACD) indicator, a technical development that preceded significant price declines in the past. This occurrence has prompted analysts to closely monitor ETH’s price action as it approaches critical support levels.
The MACD, a widely utilized momentum indicator, helps traders assess the strength and direction of price trends. Historically, when ETH’s MACD line crosses below the signal line on a weekly chart, the asset frequently experiences sharp sell-offs. This technical marker flashed a downward cross in early 2025, which was followed by a dramatic drop of over 60% in Ether’s price within weeks.
Currently, a similar MACD bearish crossover is unfolding, raising concerns about a potential extended decline in short-term price momentum. In mid-2024, a comparable MACD signal preceded a 46% drop in ETH prices, demonstrating the indicator’s past reliability in forecasting notable corrections.
Critical Support Zone
ETH is now retesting an important support threshold around $4,000—a level it has largely maintained since reclaiming it in early August. Holding above this price point is essential for bulls aiming to prevent deeper losses and potentially prepare for the next upward movement. Throughout 2021, when ETH fell below this mark in December, it eventually faced a steep descent of approximately 78%, bottoming near $880 amid the 2022 bear market.
Several market watchers emphasize that maintaining the $4,000 region could be pivotal for Ether’s near-term resilience. Elliott Wave analyst Man of Bitcoin noted that as long as ETH remains above roughly $3,899, the door remains open for upward momentum. Conversely, slipping beneath this support may signal the onset of a larger correction phase.
Other analysts, such as trader Koala, point to recent price action indicating a loss of trend strength, suggesting a “weekly breakdown” is underway after ETH ceded support near $4,200. This view implies the possibility of more pronounced downward movement in the coming days.
Market Context
Bearish sentiment currently appears dominant, with sellers actively seeking to push ETH below the lower border of a descending price channel around $3,745 on daily charts. This technical setup further contributes to cautious outlooks among traders and observers.
Despite these bearish indicators, some market participants remain attentive to prospective support retests that could set the stage for renewed rallies toward higher price targets, including the $5,000 level. However, such outcomes rely heavily on ETH’s ability to hold key support levels amid volatile market conditions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments carry risks, and readers are encouraged to conduct their own research before making trading decisions.
