This trend could herald Ether's comeback.
The second-largest cryptocurrency keeps falling. But Ether could soon benefit from a new development in the financial world.
Anyone who has invested money in Ether hasn't had much to celebrate in recent years. The price of the second-largest cryptocurrency has fallen by 40 percent in the past year alone – while Bitcoin and other cryptocurrencies have risen significantly over the same period. For several weeks now, Ether has even repeatedly traded below the $2,000 mark. This is its lowest level in over two years.
The sell-off was predictable, some analysts believe – citing chart techniques. Market observers use this to try to anticipate future movements based on past price movements. Recently, a price pattern appeared on the Ether chart that analysts believe is the beginning of another downtrend: a "death cross."
This is referred to when the 50-day moving average (50-day moving average) crosses the 200-day moving average from top to bottom. Chart technicians see this as a sign of further price declines. Indeed, since the "death cross" was visible, Ether has lost more than a fifth of its value.
Recently, the entire crypto market has been under pressure. Concerns about continued tightening monetary policy hit interest-sensitive digital currencies, as did the geopolitical uncertainties under US President Donald Trump.
Ether, however, faces additional problems. These are related to the system behind the cryptocurrency and are putting additional pressure on the price. Ether is the digital currency of the Ethereum blockchain. The blockchain is the decentralized data protocol used to process transactions. Many other crypto projects use the Ethereum blockchain to program their own applications – so-called Layer 2 networks such as Arbitrum or Base.
