Ethereum (ETH) has reached a critical juncture in its price action, with a newly confirmed Golden Cross pattern on the 12-hour chart offering hope to bulls even as the cryptocurrency struggles to maintain support at $2,400. This technical development comes at a pivotal moment, as Ethereum’s recent strength relative to Bitcoin faces its first major test.
Golden Cross Formation Signals Potential Bullish Momentum
According to prominent analyst Ted Pillows, Ethereum’s 50-period moving average has crossed above the 200-period moving average on the 12-hour timeframe, forming a Golden Cross – a pattern historically associated with extended bullish trends. This technical signal gains additional significance given ETH’s recent 12% decline from last Tuesday’s highs.
Critical Support Levels Under Pressure
The $2,400 support zone has become increasingly important as ETH consolidates following a volatile weekend that saw prices spike to $2,670 before sharply reversing. This price action aligns with broader market uncertainty around key resistance levels, suggesting that the coming days will be crucial for determining medium-term direction.
Technical Analysis and Price Targets
Key technical levels to watch include:
- Immediate support: $2,390-$2,400
- Secondary support: $2,200-$2,300
- Critical resistance: $2,550-$2,600
- Golden Cross target: $3,000
FAQs About Ethereum’s Golden Cross
What is a Golden Cross?
A Golden Cross occurs when a shorter-term moving average crosses above a longer-term moving average, typically signaling the potential start of a bullish trend.
How reliable are Golden Cross signals?
While historically significant, Golden Cross signals should be considered alongside other technical indicators and market conditions for more reliable trading decisions.
What could invalidate the bullish setup?
A decisive break below the $2,390 support level could trigger a deeper correction and potentially invalidate the bullish implications of the Golden Cross.
Time will tell whether this Golden Cross marks the beginning of Ethereum’s next major uptrend or if more consolidation is needed before a sustained move higher can materialize.