We have experimentally studied the unstable dynamics of a harmonically trapped Bose-Einstein condensate loaded into a 1D moving optical lattice. The lifetime of the condensate in such a potential exhibits a dramatic dependence on the quasimomentum state. This is unambiguously attributed to the onset of dynamical instability, after a comparison with the predictions of the Gross-Pitaevskii theory. Deeply in the unstable region we observe the rapid appearance of complex structures in the atomic density profile, as a consequence of the condensate phase uniformity breakdown.