Ethereum may be about to confirm a golden cross. A breakout towards $4000 is therefore becoming increasingly probable.
Ethereum (ETH) It is nearing a possible breakout, as it moves closer to the formation of a gold cross. This classic technical indicator signals a significant shift in momentum. As ETH is hovering below the $2.800 resistance level and key moving averages, historical performance, as well as confluence of these indicators, suggest a move towards $4,000 if volumes pick up. Bulls are cautiously optimistic, as they look to capitalise on the developing set-up.
Points of interest
- Golden Cross Incoming: ETH’s 21-day Moving Average is rapidly approaching a bullish cross-over above the 200-day. This has historically been a bullish pattern.
- Major Resistance At $2,800 Ethereum consolidates under $2,800, aligning with value zone high.
- Supportive Structure Under key resistance, the 21-day MA and 200-day MA act as dynamic supports. They build bullish pressure.
Ethereum has recently broken above the point of no return, an area with a lot of volume. This has sparked a bullish trend. The price has steadily climbed since, testing now the $2800 resistance. It is important to note that this level coincides the high of value, creating an area where both algorithmic and traders are closely watching.
Crucially, the 21-day moving average is now rising and on the verge of crossing above the 200-day MA — a textbook golden cross formation. In the past, this pattern often preceded periods where Ethereum’s price grew rapidly, leading to long-lasting rallies lasting several weeks. The golden cross gave technical traders in past cycles a strong long bias, enhancing the potential of future upside.
Ethereum’s two moving averages are convergent, and it is creating a structure of support beneath the resistance. This is a signal to technical analysts that pressure for upward movement is increasing.
To confirm the bullish forecast, ETH must have a daily close of $2,800 or higher on a high volume. If the breakout is weak, it could lead to a rejection. However, a spike in volume can trigger a new leg upward. If the momentum continues, then it may accelerate towards $4,000, an important psychological and technical area. To gauge the strength of this move, traders should monitor open interest and funding rates.
Price action to come
Ethereum’s confirmation of the golden cross, and a break above $2.800 in strong volume could trigger a quick rally towards the $4,000 mark. If the structure of the bullish pattern is sustained above the resistance, it could signal the beginnings of a brand new upward trend.
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Source: crypto.news
