For Sarah, a 32-year-old graphic designer, it requires a lot of planning and saving just a little bit from every payday. She plans to have enough money for a condo down payment by investing in Ethereum. Then she reads the headlines: "Ethereum Death Cross Signals Imminent Crash!" Then, the pandemic arrived, and suddenly, that dream seems a whole lot more out of reach. Does this sound familiar? Are you Sarah? All that said, it’s because I know I’ve felt that gut-wrenching feeling of uncertainty first hand.

Death Cross: Hype or Harm?

Let's be real. The term "death cross" sounds terrifying, right? Essentially, it’s any time the 20-period exponential moving average (20-2W EMA) crosses below the 50-period EMA. The financial press just loves to scare-monger it, depicting it as a doom-and-gloom harbinger. But is it really that simple? Think of all the advance weather forecasts that are calling for a major blizzard. Instead, you’re left shoveling a mere dusting of snow. Signs such as the death cross aren’t magical oracles. First, they are lagging indicators—they tell you what happened, not what’s going to happen.

You know that time when everyone said the housing market would collapse in 2023? It didn’t, or at least not to the extent that was widely expected. In the end, economic indicators are only one small part of a vastly bigger equation.

Fear Is the Real Virus

Here's a hard truth: the biggest threat to your portfolio isn't the death cross. It's your own emotions. When you see red, panic sets in. Then you make all these reactive decisions. You sell low out of fear and you're selling yourself short. You’re jeopardizing future gains.

Sure, HODL is easy to preach from an armchair, but when you see doom and gloom on your portfolio’s horizon as a reality, it’s far more challenging. Recognize your fear, but don’t allow it to shape your response. If you don’t really like something, think about reducing the size of your proposal.

  • Set Stop-Loss Orders: Protect your downside.
  • Diversify: Don't put all your eggs in one basket.
  • Breathe: Seriously, take a break from the charts.
  • Avoid Crypto Twitter: This is a must!

Here's where the unexpected connection comes in. Think of Ethereum as a living organism. It can fall ill (price crashes), but it has this extraordinary power to recover and innovate. Though this death cross may be a symptom, it isn’t the death of the creature.

Ethereum's Heartbeat Still Strong

These aren’t just pretty numbers, they speak about tremendous real-world utility and demand. It's like a city that's experiencing a temporary economic downturn but still has a thriving arts scene, innovative businesses, and a growing population. The potential is still there.

So don’t get carried away by the headlines or the hoopla. The death cross is a big, bearish signal — no doubt about it — but it isn’t a death sentence. Recall that death cross of mid-2022 foreshadowed a ~40% drop in ETH’s price. Photo credit: JodieC79 via Foter.com / CC BY-NC-SA Past performance is not future results.

  • Institutional Appetite: Ether funds are seeing massive inflows. Smart money is still betting on Ethereum. $2.43 billion in inflows in 2025 and $14.29 billion in assets under management, to be exact!
  • Network Activity: Ethereum is busier than ever. DApps, DeFi, and staking are driving record transaction volumes. 1.45 million successful transactions on Tuesday!
  • Volume: The price rise since May has been accompanied by its strongest volume since July-August 2022 (the last bear market recovery).

Don’t attack the other side. Rather, consider using this moment for some self-reflection. Ask yourself these questions:

Re-Evaluate, Don't Annihilate

If you can truthfully answer yes to these questions, you’ll put yourself in the best position to make the right choice. This is true regardless of what the charts show.

Maybe you decide to trim your position. Maybe you decide to buy the dip. Or perhaps you simply determine to hunker down and ride out the storm. The choice is yours. Just don’t let fear drive your decision making. This isn’t future-casting, this is self-discovery and learning to embrace risk.

  • What is my risk tolerance?
  • What are my investment goals?
  • Am I comfortable with the possibility of further downside?

If you can honestly answer these questions, you'll be in a much better position to make informed decisions, regardless of what the charts say.

Maybe you decide to trim your position. Maybe you decide to buy the dip. Or maybe you just decide to hold tight and weather the storm. The choice is yours. Just don't let fear be the deciding factor. This isn't about predicting the future; it's about understanding yourself and your relationship with risk.