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Ethereum (ETH) rose above $4,000 earlier today for the first time since March 2024. After surpassing a key price level with a golden cross, analysts are confident that this could mark the start of the highly anticipated altcoin season.
How far can the Golden Cross push Ethereum?
Ethereum, the leading blockchain for smart contracts, saw its native ETH token rise above $4,000 today. What’s interesting is that ETH is showing signs of strength not only against USDT, but also against Bitcoin (BTC).
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The daily ETH/BTC trading chart below shows that ETH has made gains 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.
Continued strength against BTC is important for any potential upcoming altseason – a period characterized by altcoins outperforming BTC as the latter continues to trade sideways within limits.
Crypto analyst @venturefounder went to X to 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 can give to the price of ETH, stating:
The last time this happened, Ethereum was still in the consolidation phase of the bear market, but still up +129%. In the 2021 bull market, the last goldencross took place 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 the 200-day MA, a sign of a strong rally or trend reversal.
Another crypto analyst Altcoin Sherpa indicated that if ETH decisively breaks the $4,000 level, the next resistance level could be around the $4,800 to $5,000 price level. According to CoinGecko, the current all-time high (ATH) value of ETH is $4,878, recorded in November 2021.
It is also worth highlighting that Ethereum Exchange Traded Funds (ETF) are finally a reality start to attract the attention of institutional investors. According to facts from SoSoValue, US-based spot ETH ETFs attracted $428 million in daily aggregate net inflows on December 5.
Alt season on the horizon?
Bitcoin dominance (BTC.D), a key metric often used to determine the start of the altseason, has fallen steadily over the past three weeks. BTC.D has crashed from around 61% to 55%, indicating strong recent altcoin performance against BTC.
Altcoin’s resilience during yesterday’s BTC flash crash to $90,500 is another bullish sign indicating 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 expectations for an Ethereum ‘god candle‘ that could catapult the digital asset to $5,000, the coming days will undoubtedly be exciting for altcoin bulls. At the time of writing, ETH is trading at $4,000, up 2.5% in the last 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
