Ethereum News Update: Ethereum's Recovery Remains Uncertain Amid Growing Death Cross Signals and Increasing Hodler Departures

Ethereum is under increasing strain as a 300% jump in sales from long-term investors coincides with a bearish technical indicator called a "death cross," putting its recent price recovery at risk. After briefly climbing 10% from a low of $2,600 this week, the cryptocurrency is now hovering around $2,820 but remains susceptible to further drops.

that the combination of heightened selling activity and weakening technical signals could push back down to key support zones as soon as next month.

The immediate cause for alarm appeared on November 23, when net sales from holders (wallets with ETH for more than 155 days) soared to 1,027,240 ETH—a threefold increase from the previous day's 334,600 ETH. This marks a major withdrawal of long-term capital at a time when Ethereum's price movement already points to broader market fragility. The sell-off coincides with the emergence of a death cross, where the 50-day exponential moving average (EMA) falls below the 200-day EMA,

to extended periods of decline.

Technical indicators further support the bearish perspective. Despite a short-lived bounce, Ethereum has not managed to reclaim the psychologically important $2,800 mark. The asset is currently near $2,820, with its initial support at $2,710—a Fibonacci retracement point. If this level fails, the price could slide another 13% to around $2,450, at $1,700 if selling continues. Meanwhile, Ethereum ETFs, which experienced seven consecutive days of outflows earlier this month, have not attracted steady demand, with $182.8 million withdrawn on November 17 and $261.59 million on November 20 .

Despite the prevailing bearish trend, Ethereum's ecosystem is showing some resilience. BitMine, a company specializing in crypto infrastructure, has announced the launch of the Made in America Validator Network (MAVAN), a U.S.-based Ethereum staking project designed to enhance the network's security and decentralization. The firm, which is currently sitting on $4 billion in unrealized losses from recent downturns,

a "golden opportunity" to buy ETH at lower prices. Likewise, Coinbase's new Ethereum-backed loan feature, which lets users borrow cash using their ETH as collateral, has increased demand for the asset by providing liquidity without requiring sales .

Looking forward, Ethereum's upcoming on-chain improvements, such as the Fusaka protocol update scheduled for December 3, could offer a technical lift by doubling the network's blob capacity and enhancing scalability. However, broader economic challenges remain, with the Federal Reserve's postponed rate reductions and ongoing inflation concerns reducing risk appetite in crypto markets.

that although Ethereum's core fundamentals are still robust, the Fed's rate decision on December 11 and the outcome of the Fusaka upgrade will be pivotal in determining if the asset can hold above the $2,936 support or if it will revisit the lows seen in 2025.

At present, traders are preparing for turbulent price swings. The combination of the death cross and increased selling from long-term holders has created a self-perpetuating bearish environment, with sellers dominating both short-term moves and overall sentiment. While Coinbase's lending service and BitMine's staking initiative offer some hope, the larger market context—characterized by ETF withdrawals and a fragile macroeconomic situation—suggests Ethereum's short-term outlook remains risky.