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ethereum (eth) surpassed $4,000 today for the first time since March 2024. Having surpassed a key golden cross price level, analysts are confident that this could signal the start of the highly anticipated altcoin season.
How far can the Golden Cross boost ethereum?
ethereum, the leading smart contract blockchain, saw its native eth token surpass $4,000 today. The interesting thing 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, you can see that eth has been making gains against the leading 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 next alt-season, a period marked by altcoins outperforming btc as the latter continues to trade sideways within a range.
Cryptoanalyst @venturefounder took <a target="_blank" href="https://x.com/venturefounder/status/1865051832017445043″ target=”_blank” rel=”nofollow”>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 impart to the price of eth, stating:
The last time this happened, ethereum It was still in the consolidation stages of the bear market, but it still rose +129%. In the 2021 bull market, the latest goldencross occurred 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 surpassed the 200-day MA, a sign of a strong rally or trend reversal.
Another crypto Analyst Altcoin Sherpa <a target="_blank" href="https://x.com/AltcoinSherpa/status/1865056309990527015/photo/1″ target=”_blank” rel=”nofollow”>indicated 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, the current all-time high (ATH) value of eth is $4,878 recorded in November 2021.
It's also worth highlighting that ethereum exchange-traded funds (ETFs) are finally from to attract the attention of institutional investors. According <a target="_blank" href="https://sosovalue.com/assets/etf/us-eth-spot” target=”_blank” rel=”nofollow”>data From SoSoValue, US-based spot eth ETFs attracted $428 million in total daily net inflows on December 5.
Altseason on the horizon?
bitcoin (btc.D) dominance, a key metric often used to determine the start of the alt season, has been in continuous decline for the past three weeks. btc.D has plummeted from about 61% to 55%, indicating strong recent performance of altcoins against btc.
Altcoin resistance during yesterday's btc flash crash to $90,500 is another bullish signal hinting at a possible altcoin rally in the coming days. Additionally, altcoin analyst crypto Amsterdam <a target="_blank" href="https://x.com/damskotrades/status/1865060401429238154″ target=”_blank” rel=”nofollow”>noted that it may be time for mid-cap altcoins to begin their parabolic cycle.
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With great expectations for an ethereum'god candle' which can catapult the digital asset to $5,000, the next few days are sure to 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, x charts and Tradingview.com
