[Red Alert on Ethereum Price Forming Several Dangerous Patterns]
Ethereum, the world's second-largest cryptocurrency, has underperformed Bitcoin this year, mainly due to slow growth in ETFs and competition from other blockchains. ETH is up less than 20% since 2024, while Bitcoin (BTC) is up more than 50%.
Technical analysis shows that Ethereum may weaken further. On the weekly chart, ETH formed a double top pattern and confirmed a bearish breakout at $2,824. Additionally, there is a death cross between the 200-day and 50-day Hull Moving Average (HMA), which is another bearish sign. The last time something similar happened was in March 2022, and prices subsequently fell by 70%.
Ethereum is also exhibiting a bearish flag chart pattern and consolidating near the 50% Fibonacci retracement level, which could lead to a bearish breakout for the asset with a target at $2,111.
Fundamentally, the Ethereum ETF has not seen strong inflows, with outflows exceeding $530 million, compared to the Bitcoin ETF which has seen inflows of over $20 billion. In addition, Solana’s transaction volume in the decentralized finance (DeFi) and NFT industries has surpassed Ethereum, further intensifying competition.
