Yalla-Crypto - After a long period of decline, Ethereum (ETH) has begun to show strong bullish indicators, the most notable being the confirmation of the 'golden cross' pattern, which is historically considered a signal often indicating the beginning of a sustained upward trend.
What is the golden cross and why does it matter? The 'golden cross' refers to the 50-day moving average crossing above the 200-day moving average on the daily chart, which has recently appeared in Ethereum's performance. Analyst Ted Bilo sees this cross as paving the way for the coin to rise towards the $3,000 level in the near term.
Additional indicators support the bullish trend: MVRV and whale accumulation, analyst Ali Martinez pointed out that the MVRV ratio (market value to realized value) has shifted from negative to positive, indicating that Ethereum remains undervalued compared to its on-chain benchmarks.
At the same time, the purchases by large investors (whales) have significantly increased, with over 450,000 ETH purchased in the last month. Data also shows a withdrawal of nearly one million Ethereum from exchanges since April, reinforcing the trend towards long-term holding.
Martinez confirms that as long as Ethereum remains above the critical support level of $2,200, price targets of $3,000 and $4,000 remain possible.
Technical analysis: Fibonacci levels and upcoming forecasts. The price of ETH rebounded from the $1,600 area and broke the Fibonacci level of 0.618 at $2,081, which has now become an important support. The positive momentum then pushed the price towards the Fibonacci extension of 1.618 at $2,290, which still represents a pivotal point if the upward trend continues.
Future expansions suggest potential targets including:
2.618 at $2,627
3.618 at $2,964
4.236 at $3,172
These levels align with key psychological points such as $3,000 and $3,200, enhancing the chances of achieving a new jump if the $2,627 level is consistently breached.
Current momentum: Technical indicators predict a temporary slowdown. The Relative Strength Index (RSI) peaked at 72 in early May, indicating that Ethereum entered the 'overbought' territory. With a slight pullback, the index remains at 60.90, indicating continued bullish momentum but at a calmer pace.
As for the Balance of Power (BoP) indicator, it showed a slight downward divergence with a value of -0.60, which may indicate a potential period of consolidation or price correction before resuming the upward trend.