Ethereum MACD Flashes Bearish Signal as ETH Risks Drop Below $4,000

  • Ether’s (ETH) weekly chart has triggered a bearish “sell” signal on the MACD indicator.
  • Past MACD sell signals were followed by ETH price drops of up to 60%.
  • ETH is approaching the $4,000 support level, which is critical to hold for any price recovery.
  • Analysts warn that breaking below $4,000 could lead to a deeper correction, with risks of another major decline.
  • Bears are currently controlling the market and targeting the $3,745 support level.

Ether (ETH) issued a bearish signal on its weekly chart as the MACD indicator flashed a “sell” signal this week. The activity comes while the current price nears $4,000, a key support level that traders are closely monitoring.

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Recent data shows that when the MACD, a technical tool for measuring price momentum, crosses bearishly on ETH’s weekly chart, it has been followed by steep declines. In mid-2024, ETH fell by 46% after a similar development. In early 2025, the drop exceeded 60% in just a few weeks.

Posting on X, analyst CRYPTO Damus noted, “Not liking this Ethereum weekly MACD cross to red after 22 weeks green,” saying that previous occasions were followed by substantial losses for ETH. Analyst Titan of Crypto also stated, “Although the week hasn’t closed yet, the MACD is currently crossing bearish. Confirmation needed, but one must be prepared for any scenario.” Other analysts suggest ETH could decline further before any potential rebound.

The $4,000 price level has acted as strong support since August 2025. According to Man of Bitcoin, as long as ETH’s price stays above $3,899, there is still a chance to move higher. However, the analyst added, “A break below this level would suggest that a larger correction is unfolding.” Another trader, Trader Koala, pointed out that ETH is in a “weekly breakdown and trend loss” after dropping below $4,200, forecasting further downward momentum.

If the price descends under $4,000, it could mirror a sharp drop that occurred in late 2021, when ETH ultimately bottomed near $880. As reported by Cointelegraph, bears remain focused on pushing ETH beneath the $3,745 support, increasing the risk of extended losses.

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The MACD, or Moving Average Convergence Divergence, is a price trend indicator used to signal momentum shifts, often indicating whether an asset is likely to continue upward or face a potential drawdown.

This article does not offer investment recommendations. All investors should conduct their own research before making decisions.

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