Ether Faces Potential Decline Amid Bearish MACD Signal

According to Cointelegraph, Ether (ETH) is experiencing a bearish signal from its moving average convergence divergence (MACD) indicator, which has historically led to significant price drops. The MACD indicator, a tool used in technical analysis to assess momentum, has flashed a bearish cross on the weekly chart, suggesting a potential decline in ETH's price. This pattern, observed in early 2025, resulted in a 60% drop in Ether's spot price within weeks. A similar scenario is unfolding in October, raising concerns about further losses. Analysts have noted that previous instances of the MACD line crossing below the signal line have led to sharp declines, with ETH experiencing losses of 46% in mid-2024 and 60% in the first quarter of 2025. Analyst CRYPTO Damus expressed concern over the recent MACD cross to red after 22 weeks of green, highlighting that previous occurrences were followed by significant price drops. Fellow analyst Titan of Crypto advised caution, urging followers to be prepared for any scenario once the signal is confirmed. Ether's price is currently testing the $4,000 support level, a critical juncture for maintaining its uptrend. Bulls must keep the price above this level to avoid further declines. Historically, when Ether fell below this threshold in December 2021, it led to a 78% drop, bottoming around $880 during the 2022 bear market. Elliott Wave analyst Man of Bitcoin emphasized the importance of holding above the $3,899 support level to maintain upward momentum, warning that a break below could indicate a larger correction. Trader Koala noted that Ether is in a "weekly breakdown and trend loss" after losing support at $4,200, predicting downward acceleration. As reported by Cointelegraph, Ether bears are currently focused on pushing the price below the lower boundary of a descending channel at $3,745 on the daily time frame. Investors are advised to conduct their own research and exercise caution, as every investment and trading move involves risk.