Key Points:
Ethereum's price previously dropped 60% due to a bearish crossover, and this situation has reappeared.
ETH must stay above $4,000 to avoid further losses.
The MACD indicator for Ethereum (ETH) has issued a "bearish signal" on the weekly chart, a phenomenon that historically usually indicates a significant price drop.
The MACD indicator for Ethereum showed a bearish crossover in early 2025, during which ETH's price fell over 60% within weeks.
A similar pattern has reemerged this October, increasing the likelihood of a larger decline in the coming days or weeks.
MACD is a commonly used momentum indicator in technical analysis that helps traders assess the strength, direction, and duration of asset price trends.
Currently, the indicator on the weekly chart has formed a MACD bearish crossover, as shown in the image below.
Historical data shows that when the MACD line (blue) crosses below the signal line (orange), ETH tends to experience significant declines. Ethereum dropped 46% in mid-2024 and another 60% in the first quarter of 2025.
Analyst CRYPTO Damus stated on the X platform on Tuesday: "I don't like that Ethereum's weekly MACD has turned red after 22 consecutive weeks of green." He added that after the last three bearish crossovers, ETH's price saw significant declines.
Another analyst, Titan of Crypto, reminded his followers to "be prepared for any scenario" once this signal is confirmed.
Is #Ethereum shifting momentum? 👀 After breaking above the range highs, $ETH seems to be re-entering the weekly range. Although the week hasn’t closed yet, the MACD is currently crossing bearish. Confirmation needed, but one must be prepared for any scenario. 🫡 pic.twitter.com/Zi6d68jMdr
Other ETH price analysts believe that ETH may continue to retrace, testing lower support levels before starting a new upward trend, targeting $5,000.
Ethereum's price is approaching a critical point and re-testing the $4,000 support level, which it has held since reclaiming it in early August.
Bulls need to ensure that ETH's price remains above this level to increase the probability of a recovery in the upward trend.
It is worth noting that the last time Ethereum fell below this price level in December 2021, the price plummeted by 78%. During the bear market of 2022, ETH dropped to around $880 at its lowest.
According to Elliott Wave analyst Man of Bitcoin on the X platform: "As long as ETH's price stays above the $3,899 support level, there is still a possibility for direct upward movement." He added:
Trader Koala stated that after losing the $4,200 support, ETH is currently in a "weekly breakdown and trend loss" state.
$ETH This is a weekly breakdown and trend loss. This is not bullish chop (that is cope from the bulls). We will likely see downward acceleration sooner than later. Weekly range low deviation? Maybe. But I wouldn't bet on that. pic.twitter.com/4Fq2OsOO7j
According to Cointelegraph, Ethereum bears currently dominate the market, pushing the price below the daily descending channel's lower boundary of $3,745.
Related: "Dinosaur Coin" Season: Why Zcash and Dash Lead the Rebound?
Original article: “Ethereum Triggers Key Bearish Signal—Last Time It Happened, ETH Dropped 60%”
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