Ethereum (ETH) crossed $4,000 earlier today for the first time since March 2024. After crossing a key price level with a golden cross, analysts are confident that it could signal the start of the much-anticipated altcoin season.
How Far Can Golden Cross Push Ethereum?
Ethereum, the leading smart contract blockchain, saw its native ETH token surpass $4,000 today. Interestingly, ETH is showing signs of strength not only 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 is making gains against the top cryptocurrencies. The ETH/BTC trading pair has risen from 0.032 on November 21 to 0.04 at the time of writing.
Continued strength against BTC is critical to any potential upcoming altseason – a period marked by altcoins outperforming BTC as the latter continues to trade within a range.
Crypto analyst @venturefounder took X Confirm That ETH has completed its first golden cross of the year on the daily chart. The analyst highlighted the bullish momentum that a Golden Cross could provide to ETH’s price, stating:
Last time this happened, ethereum The bear market was in a consolidation phase but it still went +129%. In the 2021 bull market, the last golden cross 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 terms of ETH, the 50-day MA has crossed above the 200-day MA, indicating a strong rally or trend reversal.
Another crypto analyst Altcoin Sherpa pointed out That if ETH decisively breaks the $4,000 level, its next resistance level could be around the $4,800 to $5,000 price level. According to CoinGecko, ETH’s current all-time high (ATH) value of $4,878 was recorded in November 2021.
It is also worth highlighting that Ethereum exchange-traded funds (ETFs) are finally start To draw attention from Institutional investors. Accordingly data From SoSoValue, US-based spot ETH ETFs attracted $428 million in daily net inflows on December 5.
Altseason on the horizon?
Bitcoin dominance (BTC.D), a key metric often used to determine the start of the altseason, has been on a steady decline over the past three weeks. BTC.D has crashed from around 61% to 55%, reflecting the strong recent performance by altcoins against BTC.
Altcoin resilience during yesterday’s BTC flash crash to $90,500 is another bullish sign pointing to a potential altcoin rally in the coming days. In addition, altcoin analyst Crypto Amsterdam noted That it may be time for mid-cap altcoins to start their parabolic cycle.
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With high hopes for an EthereumGod’s candle‘ that could push the digital asset to $5,000, the coming days are going to be interesting for altcoin bulls. At press time, ETH trades at $4,000, up 2.5% in the past 24 hours.
Featured images from Unsplash, X and charts from Tradingview.com
