Ethereum's Bearish Sign Could Lead to Significant Price Drop
Ethereum faces a potential significant drop as bearish signals appear once again, reminiscent of previous sharp declines.
Key Points
- Ether’s price previously fell 60% after a similar bearish signal.
- To avoid further losses, ETH must maintain a price above $4,000.
Ethereum’s MACD indicator is again signaling a sell on its weekly chart, raising concerns of significant price declines in the near future.
Historical Context: Past Price Drops
In early 2025, a bearish signal caused the price of Ether to drop by more than 60%. As October unfolds, the same pattern appears to be re-emerging, likely leading to another decline in the coming days.
ETH/USD weekly chart. Source: Cointelegraph/ TradingView
“Not liking this Ethereum weekly MACD cross to red after 22 weeks green,” said analyst CRYPTO Damus, referencing previous sharp ETH price drops linked to this indicator. Fellow analyst Titan of Crypto advised followers to prepare for any eventuality once the bearish signal is confirmed.
As Ethereum approaches a critical level near $4,000, it’s essential for bulls to uphold the price above this threshold to support a potential price recovery. A drop below this level could mirror trends from 2021, where the ETH price saw drastic reductions during bear market conditions.
“As long as ETH price holds above the $3,899 support level, a direct move to the upside remains possible,” said Elliott Wave analyst Man of Bitcoin. If it breaches this level, a more significant downtrend may set in.
Traders remain vigilant, as Ether struggles against bearish momentum with predictions leaning towards possible further declines.
