Ethereum (ETH), the second largest cryptocurrency by market capitalization, has completed its first golden cross of 2024.
A golden cross happens when a cryptocurrency's short-term moving average, usually the 50-day simple moving average (SMA), rises above its long-term moving average, usually the 200-day SMA.
Ethereum's 50-day moving average crossed above its 200-day moving average, confirming the golden cross pattern. This pattern is typically considered a bullish indicator, suggesting that the asset's price could experience significant upward momentum. Historically, Ethereum's previous golden crosses have often led to notable rallies.
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The last time Ethereum saw a golden cross was in November 2023, after which it rose from nearly $1,900 to a high of $4,093 in March this year.
Will history repeat itself?
In the shadow of Bitcoin's $100,000 milestone, expectations remain high, with investors expecting Ethereum will break the record it set three years ago. At its current price of $3,848, Ethereum is 21.3% away from record highs of $4,891 reached on Nov. 16, 2021. It should, however, be borne in mind that golden cross signals are not the holy grail of the market, as they might trap traders on the wrong side of trading.
Ethereum surged to nearly $4,000 in yesterday's trading session, bolstered by positive regulatory news and inflows into Ethereum ETFs.
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On Thursday, U.S.-listed Ethereum exchange-traded funds experienced a record daily inflow of $428 million. The nomination of Paul Atkins to oversee the Securities and Exchange Commission added to the tailwinds for Ethereum. ETFs that invest in the coin do not allow investors to profit from staking Ether, something some market observers believe could change.
Ethereum fell 1.74% in the last 24 hours as part of a crypto market sell-off that saw Bitcoin fall from a record high above $103,000 on Thursday to nearly $92,000. Crypto-tracked futures recorded nearly $910 million in liquidations in the last 24 hours, with $759 million coming from longs, or bets on rising prices.
