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Ethereum (ETH) crossed $4,000 earlier today for the first time since March 2024. Having crossed a key price level with the golden cross, analysts are confident that this could signal the start of the highly anticipated altcoin season.
How Far Can Golden Cross Push Ethereum?
Ethereum, the leading smart contract blockchain saw its native ETH token rise above $4,000 today. What is interesting is that ETH is not only showing signs of strength against USDT but also against Bitcoin (BTC).
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In the ETH/BTC daily trading chart below, it can be seen that ETH has been gaining against the top cryptocurrency. The ETH/BTC trading pair has risen from 0.032 on November 21 to 0.04 at the time of writing.
The continued strength against BTC is important for any potential upcoming altseason – a period marked by altcoins outperforming BTC as the latter continues to trade sideways within a range.
Crypto analyst @venturefounder took to X to confirm that ETH has completed its first gold cross on the daily chart. The analyst highlighted the bullish momentum that the gold cross could carry over the price of ETH, saying:
The last time this happened, Ethereum it was still in the consolidation stages of the bear market but still going +129%. In the bull market of 2021, the last goldencross was taken ETH +2,323%.
For the uninitiated, a golden cross in trading is a bullish technical indicator that occurs when a short-term moving average crosses above a long-term moving average. In the context of ETH, the 50-day MA has crossed above the 200-day MA, a sign of a strong rally or trend reversal.
Another crypto analyst is Altcoin Sherpa shown that if ETH crosses the $4,000 level with certainty, its next resistance level may be between the $4,800 to $5,000 price level. According to CoinGecko, the current highest ETH (ATH) price is $4,878 recorded back in November 2021.
It is also worth highlighting that Ethereum exchange-traded funds (ETF) are finally to begin with getting attention from institutional investors. In accordance with data from SoSoValue, US ETHs attracted $428 million in total daily inflows on December 5.
Altseason On The Horizon?
Bitcoin (BTC.D) dominance, the main metric often used to determine the start of the altseason has been falling every three weeks. BTC.D crashed from about 61% to 55%, showing the recent strong performance of altcoins against BTC.
Altcoin’s strength during yesterday’s BTC flash crash to $90,500 is another sign that there may be an altcoin rally in the coming days. In addition, altcoin analyst Crypto Amsterdam noted that it may be time for the mid-market altcoins to start their parabolic cycle.
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With great anticipation of Ethereum’god’s candle‘ that could take the digital asset to $5,000, the coming days will definitely be exciting for altcoin bulls. At press time, ETH is trading at $4,000, up 2.5% in the last 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
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