Analyst Confirms Ethereum Golden Cross as ETH Surpasses $4,000
Ethereum (ETH) surpassed $4,000 today for the first time since March 2024, marking a significant price milestone. Analysts view this as a potential start of altcoin season following the formation of a golden cross.
How Far Can The Golden Cross Push Ethereum?
Ethereum's ETH token has risen above $4,000 and shows strength against both USDT and Bitcoin (BTC). The ETH/BTC trading pair increased from 0.032 on November 21 to 0.04 currently.
Strength against BTC is crucial for an anticipated altseason, characterized by altcoins outperforming BTC while it trades within a range.
Crypto analyst @venturefounder confirmed on X that ETH completed its first golden cross of the year, indicating bullish momentum. The last similar event led to a 129% increase during a bear market and a 2,323% surge in the 2021 bull market.
Last time this happened, Ethereum was still in the consolidation stages of the bear market but it still went +129%. In the 2021 bull market, the last golden cross took ETH +2,323%.
A golden cross occurs when a short-term moving average crosses above a long-term moving average; in this case, the 50-day MA is above the 200-day MA, signaling a strong rally or trend reversal.
Analyst Altcoin Sherpa suggested that if ETH breaks decisively through $4,000, resistance may be found around $4,800 to $5,000. ETH's all-time high is $4,878 from November 2021.
Ethereum exchange-traded funds (ETFs) are attracting attention from institutional investors. Data indicates US-based spot ETH ETFs garnered $428 million in daily inflows on December 5.
Altseason On The Horizon?
Bitcoin dominance (BTC.D), a metric indicating altseason potential, has declined from approximately 61% to 55% over three weeks, reflecting strong altcoin performance against BTC.
Altcoins showed resilience during a recent flash crash of BTC to $90,500, suggesting a possible upcoming altcoin rally. Analyst Crypto Amsterdam noted mid-cap altcoins might begin their parabolic cycle soon.
With anticipation surrounding Ethereum’s potential rise to $5,000, the next few days could be pivotal for altcoin enthusiasts. Currently, ETH trades at $4,000, reflecting a 2.5% increase in the past 24 hours.
