This time, there is additional confirmation that Ethereum is flashing a significant bullish signal: the daily chart's golden cross is holding firm, and the market is responding appropriately. After recovering from the $2,450-$2,475 range, which is exactly where the 50-day and 200-day moving averages are converging, ETH is currently trading above $2,540.
Most people consider the golden cross, which is a pattern created when the 50-day moving average crosses above the 200-day moving average, to be a long-term bullish signal. A change in market sentiment and momentum is usually reflected in this setup, indicating that buyers are taking charge. Directly from this confluence zone, Ethereum has recently experienced an upward bounce, indicating strong market participant confidence and demand.
When examining the price structure in greater detail, we can see that ETH is currently trading inside a rising channel formation that has been steadily growing since its spectacular breakout in May. Ethereum has been able to maintain important support levels in spite of a few brief pullbacks and fakeouts. The recent higher lows point to a strong upward trend that, should volume rebound, could pick up speed quickly.
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The attitude of investors toward Ethereum is also changing as market players become more aware of the golden cross's wider ramifications. These configurations have historically come before multi-week rallies, particularly when they are backed by robust on-chain activity and advantageous macroeconomic circumstances.
Given the consolidation of the larger market, the current volume, albeit moderate, is not surprising. That being said, any increase in volume might serve as the impetus for ETH to retest and possibly surpass the $2,800 resistance level. Investors should currently pay particular attention to the $2,450-$2,475 support zone and the next resistance level of $2,800.
Maintaining a position above the golden cross zone indicates market strength and positions Ethereum for future growth. Ethereum might be ready for another leg higher if momentum continues, confirming the bullish crossover that recently received strong technical support.
