Ethereum (ETH) Price Flashes Death Cross After 25% Crash as MVRV Hits 2022 Levels

Akash Girimath
Updated
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Will Ethereum Price Drop 50% Amid Heavy ETH Whale Profit Booking?

Highlights

  • Ethereum price has crashed 25% this week, revisiting the $2,000 psychological level, amid Bitcoin's selling spree.
  • The formation of the Death Cross and the MVRV indicator hitting 2022 levels emphasize the bearish sentiment and huge losses for Ethereum investors.
  • Ethereum whales have accumulated roughly 120K Ether worth $240M since February 21, as retail investors panic sell during the market downturn.

Ethereum (ETH) has shed 25% this week as it collapsed from a high of $2,930. The brutal sell-off has pushed ETH price to revisit the $2,000 psychological level. This downtrend is due to Bitcoin’s (BTC) nosedive that has pushed it below $80,000 for the first time since November 2024. The bearish sentiment and fears of a bear market are emphasized even more for Ethereum price due to the formation of Death Cross, a well-known sell signal. Additionally, investors who bought ETH a year ago are also facing huge losses, as noted by the MVRV indicator, which has dipped to 2022 levels.

Let’s explore what this means for Ethereum price.

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ETH Price Collapses to $2,000 Amid Bitcoin’s Selling Spree

Since February 21, Bitcoin has shed 20.55%, and Ethereum has crashed 25%. As a result, the 50-day Moving Average (MA) has slid below the 200-day MA, forming the Death Cross. This sell signal shows that the short-term momentum is collapsing faster than the slow MA, suggesting a shift in outlook favoring bears.

The 25% crash over the week has pushed ETH price to sweep equal lows at $2,100, set up on January 1 and August 5, 2024, respectively. Since the $2,000 psychological level is just below where price currently trades, a potential recovery for Ethereum here wouldn’t be unlikely, especially if the market cools off.

However, Bitcoin’s sell-off needs to stop for ETH to bounce off the $2,000 psychological level.

Ethereum (ETH) Price Flashes Death Cross After 25% Crash as MVRV Hits 2025 Levels
ETH/USDT v. BTC/USDT 1-week, 1-day Chart
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ETH Holders Underwater as MVRV Hits 2022 Leves

Santiment’s 365-day MVRV reads -32%, which shows the average profit/loss of investors who purchased ETH a year ago is at -32%. This level was seen at the depths of the 2022 bear market, showing that this ETH price crash has surprised many investors.

Ethereum (ETH) Price Flashes Death Cross After 25% Crash as MVRV Hits 2025 Levels
ETH 365-day MVRV
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ETH Whales Buy As Retail Investors Panic Sell 

During times of intense market sell-off, retail investors tend to panic sell or fail to buy the dip. On the contrary, whales or institutional investors tend to be buyers during these times. Wallets holding 1,000 to 10,000 ETH accumulated roughly 120K Ether worth $240M since February 21, further highlighting this narrative.

Ethereum (ETH) Price Flashes Death Cross After 25% Crash as MVRV Hits 2025 Levels
ETH Whales Holding 1K to 10K Accumulate as Price Crashes 25%

What’s Next for ETH price?

ETH price has had a bad reputation due to its lackluster performance in 2024, and to add to its woes, the power struggle happening at the Ethereum Foundation involving Vitalik Buterin and Aya Miyaguci. From a technical perspective, Ethereum recovery is unlikely until the crypto market cools off. Even if Bitcoin stops crashing, Ethereum price is unlikely to bounce back compared to some altcoins like Sonic (previously Fantom) due to the aforementioned events taking place at the Foundation.

For now, the key support level to watch if $2,000 gives in is $1,632. This barrier is where the most volume was traded between June 2022 and November 2023.

On the other hand, if $2,000 holds, then the next key level is $3,000. In addition to being at the psychological level, this level is where the Death Cross appears, a confluence of the 50-day and 100-day MA. Hence, $3,000 will be a tough resistance level to overcome.

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Frequently Asked Questions (FAQs)

1. What is the significance of the Death Cross formation in Ethereum's price movement?

The Death Cross is a sell signal that indicates the short-term momentum is collapsing faster than the slow MA, favoring bears.

2. How have Ethereum investors been affected by the recent price crash?

Investors who bought ETH a year ago are facing huge losses, with the MVRV indicator dipping to 2022 levels.

3. What is the next key support level to watch if Ethereum price falls below $2,000?

The next key support level is $1,632, where the most volume was traded between June 2022 and November 2023.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Senior Cryptocurrency Analyst & Market Strategist Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts. A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise. Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.