As Ethereum’s recent bullish trend has overtaken the bear trend in a golden cross, Etherdamus, a cryptocurrency analyst has said on Twitter that we should definitely expect a surge in a few days. What is the Ethereum Golden Cross?
22 May, 2019 | AtoZ Markets - Ethereum price has been on a rip recently. Just over the past seven days, ETH prices have surged 20% from just over $200 this time last Tuesday to $250 today. The fabled golden cross could signal greater upwards movement as the uptrend has now been confirmed.
What is the Ethereum Golden Cross?
Many had expected crypto markets to tumble following a disappointing announcement from the US SEC yesterday regarding the VanEck Bitcoin ETF proposal. The most likely outcome actually materialized, which was a further delay by the lethargic regulators who continue to drag their feet with anything crypto related.
During Asian trading today ETH has fallen below $250 after touching an intraday high of $254 a few hours ago. It is currently in a bullish pennant as noted by several traders on Twitter. Etherdamus mentioned earlier has observed the golden cross with the 50-day exponential moving average crossing above the slower 200 day EMA.
A golden cross is a popular technical indicator that investors use to predict a potential bullish market momentum. A golden cross appears when a security's short-term moving average (SMA) rises above its long-term moving average (LMA). In other words, This is a bullish trend reversal signal which would signal further gains in the longer term.
Analyst: Ethereum price may next rally towards $300
The Cryptomist, another popular crypto analyst on Twitter, shared her thoughts on ETH price in a recent tweet, noting that it currently has support at $249, and a near-term upside target existing at around $269.
“$ETH I have adjusted the candle resistance ever so slightly from previous post. We are within the apex of pennant. Expecting a move within 16 hours. Breakup tests $269 first, with alts moving with. Support is at 249 region,” she explained.
In terms of Bitcoin, the charts there show continued support at the downtrend line which has just been broken.
Ethereum builds strong technical foundations
Ethereum is also currently having record trading volumes according to Coinmarketcap. During its 2019 peak, last Thursday ETH volume was just below $20 billion, the highest it has ever been. The price hit resistance at $275 before pulling back to around $240 where it has been for the past few days.
At the moment, Ethereum is around $10 billion which is four times what it was in early February. Using different metrics from Coinbase, Coindesk reported that ETH volumes were the highest they have been since December 2017 when it surged from $450 to over $800. Including the exchanges, new ETH pairs in addition to the most popular two – ETH/BTC and ETH/USD – activity was worth over $1 billion during the seven day period.
Regarding Ethereum market capitalization, the coin has surpassed Ripple (XRP), which once held the second position very briefly. A $10 billion gap now exists between ETH on $26 billion and the Ripple token at $16 billion. BitMEX data has indicated that there could be a pullback for Ethereum but all other signals are bullish.
From a technical viewpoint, big things are in store for the Ethereum network as the Serenity phased upgrade to ETH 2.0 approaches. This will indeed send its critics which are largely from rival dApp networks hiding. Significant improvements to scalability and a switch to proof of stake will be the torch that lights up the Ether flames again.
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