Ethereum (ETH) price today is down -0.13% as it trades at $2,492. After an 18% crash in the past 48 hours, ETH price is stabilizing, anticipating a recovery. However, due to its persistent downtrend since December 16, 2024, a death cross looms. Will Ethereum price recovery to $3,000 prevent it? 

Will Ethereum Price Recovery to $3,000 Extinguish Fears of Death Cross?

As noted above, Ethereum price has shed 43% since December 16, 2024, causing the 50-day Moving Average (MA) to slide lower, toward the 200-day MA. If the fast-moving 50-day MA crosses below the slow-moving 200-day MA, it will trigger a “death cross.” This signal suggests that the short-term momentum is waning and bearish momentum has escalated, hinting at an incoming correction. 

However, after such a brutal crash, Ethereum price has stabilized around $2,500 with hopes of a potential bounce as BTC plugs its selling spree. As of February 26, 2025, the four-hour chart shows the Ethereum price producing a lower low while the RSI and AO indicators are setting up a higher low. This non-conformity is called bullish divergence and hints at a potential recovery rally for the ETH price.

ETH/USDT 4-hour chart

If Ethereum price is successful in its recovery, it will encounter immediate resistance levels at $2,600 and $2,700. Overcoming these short-term hurdles will allow ETH to revisit the $3,000 psychological level, coinciding with the 50-day and 200-day MAs. Such a bounce will delay the death cross formation. If investor confidence is restored, then Ethereum price forecast notes ETH could even revisit the critical resistance levels at $3,100 and $3,300, respectively. Investors need to note that this bounce is tied to BTC and the broader crypto market. If Bitcoin fails to trend higher, Ethereum will follow its lead.

Supporting this recovery are two key metrics – ETH Social Dominance and Development Activity.

ETH Social Dominance Grows, Development Activity Spikes 

The social dominance metric tracks the social volume of ETH compared to the social volume of other cryptocurrencies. Since January 2025, the dominance of Ethereum has been growing steadily, with three above-average spikes at the start of the year and in February. This shows that the interest in Ethereum is growing. Despite this, Bitcoin’s social dominance towers over ETH and has seen significant growth in the past week, majorly due to the first-mover advantage that BTC has. 

Regardless, this steady growth for Ethereum is bullish and adds credence to the potential price recovery rally thesis noted above.

Adding credence to the above is the exponential growth of the development activity of ETH. This metric doubled since the start of 2025 and currently sits at 319, which is also a bullish development.

ETH Social Dominance Grows, Development Activity Spikes, Source: Santiment

All in all, the outlook for Ethereum price has shown bullish signs hinting at a potential recovery rally in the works. The key levels to watch include $2,600, $2,700, followed by $3,000, $3,100 and $3,300. A successful bounce could prevent the looming death cross. The rising social dominance of ETH and its increasing development activity all support the short-term bounce of Ethereum price after a brutal sell-off last week.

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Filed under: News - @ February 26, 2025 7:24 am