Ethereum is about to form a golden cross, and the technical side is bullish
Ethereum is about to usher in a key golden cross, which is a bullish technical indicator. According to the observations shared by entrepreneur Ted Pillows on X, Ethereum's 50-day moving average is about to cross the 200-day moving average, forming a bullish "golden cross". Historical data shows that after the signal appeared in November last year, ETH rose 35% in a few weeks. Currently, ETH is firmly holding the $2,500 support level, and the technical side is showing a potential for a breakthrough.
This view is also shared by analyst "Merlijn The Trader". Merlijn said that ETH is repeating the market in 2017, when it began to rise after trading near the 50-day moving average. However, he emphasized that the market size is larger this time, there is institutional funding support, and the upside potential is huge, which can be regarded as an amplification of history rather than a simple repetition.
At the same time, market momentum is extending from technical to fundamental. Leading the way is that the US spot Ethereum ETF continues to gain favor from funds. BlackRock's products alone have increased their holdings of ETH worth $650 million this month, and the continuous inflow of funds from related institutions has provided strong support for the price of the BTC market.
Unlike traditional cognition, the logic of this round of Ethereum's rise has changed fundamentally. Compared with the speculative rise driven by the ICO boom in 2017, the current market is more driven by ETF fund inflows, institutional allocation needs, and actual application scenarios such as RWA. This structural change makes the foundation for the rise more solid.
A typical case is that Trump Media Company has applied for an Ethereum ETF to open up a new channel for institutional funds. The founder of ConsenSys even bluntly stated that ETH is becoming the core bridge connecting traditional finance and DeFi, which further highlights its future strategic value.
In summary, the upcoming golden cross of Ethereum (50MA crossing 200MA) indicates the possibility of a trend reversal, while the increase in institutional holdings and the expansion of application scenarios continue to strengthen bullish expectations. This dual drive not only amplifies the potential for growth, but also reduces the risk of a sharp short-term decline.
As the market's perception shifts from speculative tools to digital infrastructure, Ethereum has shown new characteristics that are different from previous cycles, and its price discovery mechanism is becoming more mature. However, investors still need to remain rational and be wary of systemic risk factors such as changes in global liquidity.
