Ethereum, the second-largest cryptocurrency by market capitalization, is once again gaining traction due to a strong technical indicator known as a golden cross. When the 50-day moving average crosses above the 200-day moving average, traders might expect long-term bullish momentum. The previous time Ethereum made a golden cross, the price increased by more than 100% in the months that followed.
Why Does the Golden Cross Matter?
The golden cross is more than just a chart pattern; it reflects market sentiment. When short-term trends outperform long-term norms, it typically indicates that investors are growing more confidence and purchasing more. According to CoinDesk, Bitcoin and Ethereum have historically achieved significant gains after following this trend.
Not only are the technicals of Ethereum improving, but so are the fundamentals. “If that happens, you buy with your eyes closed,” said analyst at follis. There are more daily active addresses, and Glassnode’s on-chain data show that transaction volume is rising while exchange reserves are declining. Both of these indicate buildup. Another encouraging sign is that BlackRock and other firms are showing an increased interest in Ethereum-based products.
Also read: XRP Surges Past USDT: Can It Dethrone Ethereum Next?