Exchange reserves have reached their annual lows, while neutral financing rates indicate room for sustained upward movement.
Ethereum [ETH] recently registered a familiar and strong potential signal: the golden cross.
This pattern - where the 50-day moving average crosses above the 200-day moving average - often indicates the beginning of significant price increases. The last time it appeared, Ethereum's value rose by nearly 90%.
Now, as Ethereum approaches the $3000 level again, both traders and analysts are asking the same question: Are we witnessing another strong breakout on the horizon?
The golden cross is back!
Ethereum has just recorded a new golden cross, as shown in the chart posted by @MerlijnTrader on X (formerly known as Twitter).
The 50-day moving average has crossed above the 200-day moving average - a pattern that previously preceded an almost 90% rise in late 2024.
Ethereum
Source: X
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After a bearish cross earlier this year led to a prolonged downward trend, this renewed signal is attracting traders' attention.
With Ethereum now stabilizing above $2500, market participants are closely watching to see if history is about to repeat itself.
What happened last time?
The previous golden cross occurred in early November 2024.
Following this signal, the price of Ethereum rose from around $1800 to a peak of nearly $3400 by late December, marking an increase of almost 89% in less than two months.
This move was not only driven by technical factors but coincided with increasing expectations regarding Bitcoin exchange-traded fund approvals in the United States, boosting broad optimism in the cryptocurrency markets.
The increasing institutional interest, along with rising Ethereum deposits allocated for trading, has contributed to bullish pressure and helped sustain this rise until the end of the year.
Has the market returned to the upside?
Ethereum
Source: Crypto Quant
Ethereum exchange reserves have dropped to 18.7 million Ethereum, the lowest level in over a year, signaling continued outflows and potential accumulation.
Ethereum
Source: Coin Glass
At the same time, financing rates were slightly negative, indicating that the current rise does not stem from overly aggressive long-term speculation.
This positive backdrop of declining supply and neutral leverage lends credibility to the golden cross signal, reducing the likelihood of a sharp correction.
