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 this could signal the highly anticipated start of the altcoin season.
How far can the 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 making gains against the major digital currency. The ETH/BTC trading pair has risen from 0.032 on November 21st to 0.04 at the time of writing.
Continued strength against BTC is important for any upcoming altseason – a period marked by altcoins outperforming BTC as the latter continues to trade within a range.
The crypto analyst @venturefounder took X to confirmation that ETH has completed the first golden cross of the year on the daily chart. The analyst pointed to the supportive trend that could give the ETH price a golden cross, saying:
The last time this happened, Ethereum it was still in the bear market consolidation phase but still went +129%. In the 2021 bull market, the golden cross finally took hold ETH +2,323%.
For the uninitiated, a golden cross in trading is a bullish technical signal that occurs when a short-term moving average crosses a long-term moving average. In the context of ETH, the 50-day MA has crossed the 200-day MA, a sign of a strong rally or reversal.
Another crypto analyst Altcoin Sherpa marked that if ETH definitely breaks through 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 high (ATH) value in November 2021 was $4,878.
It's also worth noting that Ethereum exchange-traded funds (ETF) are finally here starting to get attention from institutional investors. according to data from SoSoValue, US-based spot ETH ETFs attracted $428 million in total daily inflows on December 5th.
Altseason On The Horizon?
Bitcoin's (BTC.D) dominance, a key metric often used to determine the start of the altseason has been steadily declining over the past three weeks. BTC.D has fallen from about 61% to 55%, reflecting a recent strong performance by altcoins against BTC.
Altcoin resilience during yesterday's BTC flash crash to $90,500 is another bullish sign pointing towards a potential altcoin rally in the coming days. Additionally, Crypto Amsterdam altcoin analyst was noted that it may be time for mid-cap altcoins to start their parabolic cycle.
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With high expectations for Ethereum'god's candle' which could catapult the digital asset to $5,000, the coming days are expected to be exciting for altcoin bulls. At press time, ETH trades at $4,000, up 2.5% in the past 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
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