As a seasoned researcher with years of experience in the ever-evolving world of cryptocurrencies, I find myself intrigued by Ethereum’s latest golden cross. Having witnessed its past performances following similar patterns, I can’t help but feel a sense of anticipation for potential growth. However, as we all know too well, history doesn’t always repeat itself in the crypto world – it often just rhymes!
In simpler terms, Ethereum (ETH), the second-largest digital currency in terms of market value, has recently achieved its initial ‘golden cross’ event for the year 2024.
In simpler terms, a ‘golden cross’ occurs when the short-term average price trend of a cryptocurrency (often the 50-day moving average) surpasses its long-term average price trend (commonly the 200-day moving average).
As an analyst, I’ve noticed a fascinating development with Ethereum – its 50-day moving average has moved above its 200-day moving average, forming the so-called “golden cross” pattern. This pattern is generally seen as a bullish sign, implying that the price of Ethereum might experience a substantial increase in value. In the past, such golden crosses have often been followed by significant upward trends for Ethereum.
In November 2023, the last occurrence of a “golden cross” on Ethereum’s price chart was observed. This was followed by a significant increase in its value, rising from approximately $1,900 to a peak of $4,093 in March of this current year.
Will history repeat itself?
Under the lofty achievement of Bitcoin reaching $100,000, optimism persists, with investors believing Ethereum will surpass its previous peak set three years ago. Currently priced at $3,848, Ethereum is approximately 21.3% below its all-time high of $4,891 achieved on November 16, 2021. Nevertheless, it’s crucial to remember that golden cross signals don’t guarantee market success, as they could potentially mislead traders and put them in unfavorable trading positions.
Yesterday, the price of Ethereum almost reached $4,000 during trading, boosted by encouraging regulatory updates and increased investment in Ethereum Exchange-Traded Funds (ETFs).
On Thursday, Ethereum exchange-traded funds saw a historic $428 million influx in a single day. The appointment of Paul Atkins as a key figure at the Securities and Exchange Commission seems to be boosting Ethereum even further. Currently, ETH investment ETFs do not permit staking Ether’s profits, a practice some analysts think could evolve.
In the previous 24 hours, Ethereum dropped by 1.74%, contributing to a broader crypto market slump that caused Bitcoin’s price to plummet from its Thursday peak of over $103,000 to around $92,000. Over the same period, futures tied to cryptocurrencies registered approximately $910 million in liquidations, with $759 million attributed to long positions, which are wagers on price increases.
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2024-12-06 17:56