Yalla-Crypto - After a long period of decline, Ethereum (ETH) has begun to show strong bullish indicators, most notably the confirmation of the 'golden cross' pattern, which is historically considered a signal often indicating the start 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 Pelo believes that this cross may pave the way for the coin to rise towards the $3,000 level in the near term.
Additional indicators supporting the bullish trend: MVRV and whale accumulation. Analyst Ali Martinez pointed out that the MVRV (Market Value to Realized Value) ratio has shifted from negative to positive, indicating that Ethereum is still undervalued compared to its benchmarks on the network.
At the same time, purchases by major investors (whales) have significantly increased, with over 450,000 ETH purchased in the last month. Data also shows nearly one million Ethereum withdrawn from trading platforms since April, reinforcing the shift toward long-term holding.
Martinez confirms that as long as Ethereum remains above the critical support level of $2,200, price targets at $3,000 and $4,000 remain possible.
Technical analysis: Fibonacci levels and upcoming forecasts. The ETH price rebounded from the $1,600 area and broke the Fibonacci level of 0.618 at $2,081, which has now become an important support. 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 indicate potential targets including:
2.618 at $2,627
3.618 at $2,964
4.236 at $3,172
These levels correspond to key psychological points such as $3,000 and $3,200, reinforcing the chances of achieving a new leap if the $2,627 level is consistently broken.
Current momentum: Technical indicators predict a temporary slowdown. The Relative Strength Index (RSI) reached a peak of 72 in early May, indicating that Ethereum entered the 'overbought' zone. With a slight decline, the indicator remains at 60.90, which indicates that bullish momentum persists but at a calmer pace.
The Balance of Power (BoP) indicator has shown a slight bearish divergence with a value of -0.60, which may indicate the possibility of a period of consolidation or price correction before resuming the upward trend.