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Ethereum price has crashed, making it one of the worst-performing blue-chip cryptocurrencies in February.
Ethereum (ETH) dropped to a low of $2,075, its lowest level since January 2024 and about 50% below its highest level in November 2023. The ongoing decline has broken the second-largest cryptocurrency’s six-year track record. This marks the first February decline for Ethereum since 2018 and its worst February performance on record.
Ethereum seasonality | Source: CoinGlass
Ethereum’s decline has been more severe than that of its largest rivals. Bitcoin (BTC) has fallen by 25% from its highest level this year, while Ripple (XRP) is down around 40% in the same period.
Ethereum has dropped partly due to ongoing outflows in the exchange-traded fund. All spot Ethereum ETFs have seen asset losses for six consecutive days, bringing cumulative assets in these funds to $2.86 billion. Similarly, spot Bitcoin ETFs have shed over $4 billion worth of assets.
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Ethereum has also struggled as it continues to lose market share to other layer-1 and layer-2 projects. The most notable competitors include layer-1 networks like Solana (SOL) and BNB Smart Chain, as well as layer-2 networks such as Base and Arbitrum.
The broader crypto market fear has also contributed to Ethereum’s downturn, with the Fear & Greed Index dropping to 33.
Ethereum price loses key support as it forms a death cross
ETH price chart | Source: crypto.news
ETH price has continued crashing, as predicted in our earlier analysis, where we cited the bearish flag chart pattern. A flag pattern consists of a long vertical move followed by consolidation. This consolidation formed a rising wedge pattern, a well-known bearish continuation signal.
Worse, Ethereum has just formed a death cross, which occurs when the 200-day moving average crosses below the 50-day moving average. This is considered one of the most bearish technical patterns in the market.
Ethereum has also lost the key support level at $2,150, which previously marked the lowest swing in August and September 2023. This price served as the neckline of the triple-top pattern at $4,000.
Additionally, the Average Directional Index has risen to 40, indicating that downward momentum is strengthening.
Given that the distance between the triple-top pattern and the neckline at $2,150 is 47%, applying the same measure downward suggests that Ethereum’s price could crash to $1,095.
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