## Warning Sign: Ethereum Value Displays Perilous Signals Once More
Ethereum’s system is still experiencing intense rivalry from other Layer-1 chains such as BSC Chain and Solana (SOL). According to DeFi Llama, DEX protocols on Ethereum handled $1.012 billion in token trading volume on Monday, less than Solana’s $1.077 billion and BSC’s $1.63 billion.
The Ethereum Foundation’s recent trade of ETH tokens hasn’t improved things either. Just last week, Harikrishnan Mulackal, a former engineer at the foundation, cautioned that Ethereum’s future is endangered without explicit leadership.
Increasing worry in the crypto market is also worsening Ethereum’s decrease. The closely observed Crypto Fear & Greed Index has dropped into the fear zone at 21. Bitcoin (BTC) and other altcoins tend to perform weakly when investor sentiment is low.
This latest fall comes amid diminishing demand for the coin on Wall Street. All spot Ethereum ETFs have seen outflows for the past three straight weeks, bringing cumulative net inflows down to $2.52 billion. Total assets have fallen to around $6.72 billion.
Ethereum (ETH) has broken below the crucial $2,000 support level and is floating near its lowest point since November 6.
Before the ETH price crash, it formed a triple top pattern on the weekly chart. This pattern consists of three peaks and a neckline, which in this case is at $2,126.
Now, ETH is gradually forming another bearish pattern – a pennant. This pattern consists of a symmetrical triangle and a long vertical line. The triangle is approaching its confluence point, indicating a possible bearish breakout soon.
Ethereum also formed a death cross on the daily chart when the 50-day and 200-day moving averages crossed on February 13. A death cross is considered one of the most perilous patterns in technical analysis. Cronos Token Ascends as the Public Concurs to incinerate $50 Million in Tokens
Ethereum’s price remains deep in a bear market after plunging more than 53% from its November high.
Assuming Ethereum dips under its current yearly nadir of $1,757, a descent to the sentimental $1,500 mark might materialize.
An impending Federal Reserve rate verdict on Wednesday could potentially act as a stimulant for an upswing in Ethereum’s valuation this week. Should the Federal Reserve hint at a relaxation of policy, it may well bolster ETH and fellow digital currencies.
