The price of %Ethereum (CRYPTO: $ETH) has plunged 10% in the past 24 hours amid a broad selloff in %Cryptocurrencies and is close to forming what’s known as a “death cross” pattern.
A death cross occurs when a securities 50-day simple moving average crosses below its 200-day simple moving average.
The pattern typically indicates that short-term momentum is about to underperform the long-term average, potentially leading to a major downturn or bearish trend.
Ethereum’s sudden plunge comes amid a big drawdown in the crypto market, with %Solana (CRYPTO: $SOL) and %Dogecoin (CRYPTO: $DOGE) also falling about 10% and forming their own death crosses.
The 200-day average is widely viewed by traders on Wall Street as a barometer of long-term trends and bearish market sentiment.
%Bitcoin (CRYPTO: $BTC), the largest crypto by market cap, has seen its price fall to $88,000 U.S., its lowest level in three months, as investors turn increasingly skittish.
The price of Bitcoin is now down nearly 20% from the all-time high of just over $109,000 U.S. reached on the day of U.S. President Donald Trump’s inauguration, placing it in a bear market.
Investors appear to be fleeing riskier assets as signs mount that the U.S. economy is slowing and inflation is marching higher once again.
The $90,000 U.S. level marks the bottom of the range that Bitcoin had been trading in since the end of last November, and analysts warn that BTC could now fall towards $80,000 U.S.
The price of Ethereum has declined 28% this year to currently trade at $2,420 U.S. per share.
