Ethereum's 1st Death Cross Since 2022 Sparks 40% Drop Risk

- Ethereum (ETH) confronts its first "death cross" since 2022, highlighting downside risks. - Strong network activity and institutional inflows could fuel recovery if Ethereum breaches resistance levels. Ethereum, the second-largest cryptocurrency by market capitalization, has entered a pivotal technical phase, and its price action now signals heightened downside risks. A "death cross" has appeared on its two-week chart for the first time since 2022. This bearish indicator occurs when the shorter-term exponential moving average (20-period EMA) crosses below the longer-term EMA (50-period EMA). On June 25, 2025, Cointelegraph reported that historically, this pattern has preceded a roughly 40% price decline for Ethereum. Current price action evokes parallels to conditions from 2022, as that period featured a local top, extended consolidation, and subsequent lower highs. Ethereum now trades below both the 20-period and 50-period EMAs, which have consequently turned into resistance levels. Analysts warn that if Ethereum fails to reclaim these levels, the downtrend could persist. They identify the next critical support near $1,835, a Fibonacci retracement level rooted in the 2021-2022 price range. Despite the bearish technical picture, on-chain metrics highlight resilient network activity and market interest. On June 24, 2025, Ethereum recorded 1.45 million successful transactions, marking the highest daily figure since January 2024. Meanwhile, institutional and retail demand also appears to be recovering, with ETH trading volumes reaching their strongest levels since mid-2022. Simultaneously, Ether-focused investment funds have attracted $2.43 billion in inflows year-to-date, which has driven total assets under management (AUM) for such funds to $14.29 billion. This AUM is the highest since 2021. Analysts suggest that if Ethereum reclaims the 20-period and 50-period EMAs as support, this could tilt the market outlook toward recovery. A sustained bounce above these levels might allow Ethereum to target higher Fibonacci ranges, at which point $3,500-$4,000 could emerge as a potential bullish objective. As of June 25, 20:08 UTC, Ethereum (ETH) trades at $2,433.47. According to CoinMarketCap data on June 25, this price reflects a 0.079% decrease in the past 24 hours, while the 24-hour trading volume has also declined by 32.337%, signaling possible caution among market participants amid recent developments.