Strong network usage and volume indicate bullish potential.
Ethereum’s native token, Ether (ETH), has printed its first “death cross” on its two-week chart since the 2022 bear market.
The bearish crossover occurred as ETH’s 20-period exponential moving average (20-2W EMA; the red wave) slipped below its 50-period EMA (the blue wave). In mid-2022, a similar crossover preceded a 40% decline in Ether price.
The lead-up to Ether’s death cross closely resembles the 2022 setup: a strong local top, followed by a multimonth consolidation phase, then a slow breakdown marked by lower highs.
Additionally, in both past and present setups, Ethereum first closed below its 20-period EMA, then slid beneath the 50 EMA, forming a local bottom. It later tested these levels as resistance multiple times before reclaiming them.
As of June 2025, ETH was struggling to break above the 20- and 50-period EMAs despite repeated attempts.
Continued rejection at these moving averages keeps downside risks elevated, eyeing declines toward $1,835 — a Fibonacci level from the 2021-2022 era — as the next price floor.
Related: ETH trades near $2.5K, but weak demand clouds bullish outlook
A decisive retaking of the 20-period and 50-period EMAs as support may increase ETH’s potential of rallying toward the $3,500-4,000 price range, aligning with the Fibonacci targets.
Supporting this possibility, ETH’s price rise since May has been accompanied by its strongest volume since July-August 2022, during the last bear market recovery phase.
Also, Ether funds have witnessed their strongest inflows since 2021 in recent weeks, netting $2.43 billion so far in 2025 and managing $14.29 billion in assets overall.
The uptick in trading activity indicates renewed interest from retail and institutional participants. But the momentum appears to extend beyond mere speculation.
On June 24, the Ethereum network processed 1.45 million successful transactions, its highest daily count since January 2024, according to data resource Nansen.
The current surge points to increased utility demand from DApps, DeFi protocols, layer-2 interactions, and staking participation, all of which strengthen Ethereum’s network value.
That could lay the groundwork for a sustained recovery, aligning with both fractal and volume-based signals, if the trend persists.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
