Ethereum (ETH), the second-largest cryptocurrency by market cap, has completed its first golden cross in 2024.
A golden cross occurs when a cryptocurrency's short-term moving average, which is usually the 50-day simple moving average (SMA), rises above its long-term moving average, which is usually the 200-day simple moving average.
Ethereum’s 50-day moving average has crossed above its 200-day moving average, confirming a golden cross pattern. This pattern is typically considered a bullish indicator, indicating that the asset’s price may see significant upward momentum. Historically, Ethereum’s previous golden crosses have often led to significant rallies.
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 of this year.
Does history repeat itself?
With Bitcoin hitting $100,000, expectations remain high, with investors expecting Ethereum to break the record it set three years ago. At its current price of $3,848, Ethereum is 21.3% away from its record high of $4,891 reached on November 16, 2021. However, it is important to keep in mind that golden cross signals are not the holy grail of the market, as they can trap traders on the wrong side of a trade.
Ethereum surged to nearly $4,000 in yesterday’s trading session, supported by positive regulatory news and inflows into Ethereum ETFs.
On Thursday, Ethereum exchange-traded funds (ETFs) in the United States saw record daily inflows of $428 million. The nomination of Paul Atkins to oversee the Securities and Exchange Commission has also added to the tailwinds for Ethereum. ETFs that invest in the currency do not allow investors to profit from Ether’s position,
That’s something some market watchers think could be changing. Ethereum has fallen 1.74% over the past 24 hours as part of a crypto market selloff that has seen bitcoin fall from a record high above $103,000 on Thursday to around $92,000. Cryptocurrency futures have seen nearly $910 million in liquidations over the past 24 hours, with $759 million coming from long positions, or bets on a rise in price.
