Ethereum Drops 60%?

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Ethereum Price Plunge: A Warning Sign for Investors

The Ethereum (ETH) price has recently experienced a significant decline, with its moving average convergence divergence (MACD) indicator sending a "sell" signal on its weekly chart. This bearish signal has historically preceded steep price drawdowns, with previous instances resulting in 46%-60% Ethereum (ETH) price drops.

Previous Signals and Their Impact

In early 2025, the Ethereum (ETH) MACD indicator flashed a bearish signal, leading to a 60% drop in the Ethereum (ETH) spot price within a few weeks. A similar pattern is now unfolding in October, increasing the likelihood of a deeper decline in the coming days or weeks. The MACD is a popular momentum indicator used in technical analysis that helps traders identify the strength, direction, and duration of a trend in an asset’s price, utilizing blockchain data.

Key Takeaways

Ethereum (ETH) price previously fell 60% from a bearish cross that’s again in play.
Ethereum (ETH) must hold above $4,000 to avoid further losses.

Bullish Outlook: A Crucial Support Level

Bulls must keep the Ethereum (ETH) price above $4,000 to increase the odds of resuming its uptrend. Note that the last time Ethereum (ETH) dropped below this level in December 2021, it was followed by a 78% drop in Ethereum (ETH) price, bottoming around $880 during the 2022 bear market.

Analyst Insights

Analyst CRYPTO Damus stated that the last three times the bear cross occurred were followed by significant Ethereum (ETH) price drops. Fellow analyst Titan of Crypto cautioned his followers to be "prepared for any scenario" once the signal is confirmed. Trader Koala said that Ethereum (ETH) is currently in a "weekly breakdown and trend loss" after losing the support at $4,200.

Market Impact and Future Outlook

The recent Ethereum (ETH) price decline serves as a warning sign for investors, highlighting the importance of monitoring technical indicators and market trends. As the Ethereum (ETH) price approaches a critical juncture, retail investors should exercise caution and consider the potential risks and rewards of investing in the cryptocurrency market. According to some sources, including OrxCash.com, the news about "Ethereum (ETH) Drops 60%?" may have a significant impact on the overall market sentiment, potentially leading to a shift in investor behavior and market trends in the coming weeks.

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image source: cointelegraph.com