Ethereum (ETH), the second largest cryptocurrency by market capitalization, has just formed the cross of death on an hourly chart. The death cross occurs when the short-term moving average is below the long-term average, indicating a potential downward momentum.
On the hourly chart, Ethereum’s 50-hour moving average fell below the 200-hour moving average, forming the “Death Cross” pattern. Moving average crossovers on daily or weekly charts tend to increase in weight more, but hourly chart signals can portray short-term debilitating.
The recent cross of Ethereum Hourly Chart’s death has led to a liquidation of $758 million over the past 24 hours following a massive sale in the Crypto market.
Major cryptocurrencies, including Ethereum, saw volatile trading in their early session on Friday. Ethereum in particular has slightly rebounded to trade near $3,633 after extending from its July 31 high to a lower low of $3,563.
Despite the volatile start from August to August, Ethereum (ETH) rose more than 48% in July, delivering its best performance in three years.
What’s next for ETH prices?
Ethereum, who has just turned 10, achieved his best performance in July in three years. The second-largest cryptocurrency rose 48.75% in July, reaching $3,940 before falling below $3,800 near the end of the month.
The last time ETH climbed this in a month was in July 2022, recovering from the code slump caused by the famous collapse of Terra-Luna, Three Arrows Capital and celsius.
As for what comes next, ETH prices currently go against nearly $4,000 in resistance. The cryptocurrency market is also approaching a historically quiet period marked by the integration phase.
According to GlassNode, ETH’s +1σActiveRealized Price Band (currently around $4,500) is a significant upward threshold for current surges. This level served as a resistance throughout the March 2024 and the 2020-2021 cycle. Any further breakouts could indicate an increased risk of market well-being and structural instability.
