Ethereum (ETH), the second-largest cryptocurrency by market cap, is on the verge of a key technical pattern: a potential death cross formation on its daily chart.

A death cross occurs when the 50-day simple moving average (SMA) crosses below the 200-day SMA, typically indicating potential bearish momentum. It is widely watched by technical analysts as a signal of weakening price action and potential additional decline.

Currently, Ethereum’s 50-day SMA and the longer-term 200-day SMA have converged and might make a crossover in the next few days. If a death cross occurs, it would mark the first on the daily chart in months, dating back to late February, raising fresh concerns across the crypto market.

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To cap it all off, ETH has struggled to regain previous highs and remains locked in a trading range below the daily SMA 200 at $2544.

At press time, ETH was trading up 0.32% in the last 24 hours to $2462 and up 10% weekly. In the event of a fall, support is envisaged in the range of $2,000 and $2,100.

If the death cross formation is invalidated, Ethereum will attempt to break above the daily SMA 200 barrier at $2,544 before aiming for $3,000.

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Ethereum’s validator architecture, the foundation of its proof-of-stake security scheme, is quietly evolving, contributing to positive fundamentals.

Ethereum recently surpassed a psychological threshold: 35 million ETH are now locked in staking contracts, accounting for around 28.3% of the entire supply.

With more than a quarter of the supply immobilized and another 19% held in long-term “hodl” addresses, the tradable float is reaching pre-Merge levels. This development may result in more spot volatility as thinner order books magnify both rallies and shakeouts.