Ethereum Price Poised for Potential Breakout as Golden Cross Forms

Ethereum is showing strong bullish signals after forming a golden cross on the daily chart, fueling optimism among traders and analysts. A golden cross occurs when the 50-day moving average crosses above the 200-day moving average, often considered a reliable indicator of upward momentum in financial markets.

At the time of writing, Ethereum’s price has reclaimed the $3,400 level, suggesting increased buying pressure. This development follows a period of consolidation and is supported by rising trading volumes and renewed interest from institutional investors.

Technical analysts note that the golden cross has historically led to significant rallies for Ethereum, with past occurrences preceding gains of up to 100%. However, some caution that macroeconomic factors and potential regulatory challenges could limit the upside in the short term.

Ethereum’s resilience is further supported by the broader positive sentiment in the cryptocurrency market. Bitcoin’s recovery above key resistance levels has also contributed to renewed confidence, with altcoins like Ethereum benefiting from capital inflows.

If the bullish scenario unfolds, Ethereum could target the next major resistance near $3,700. A successful breakout above this zone could open the door for a sustained move toward the $4,000 psychological threshold. Conversely, failure to maintain momentum could see the price retrace toward support near $3,200.

Market participants are closely monitoring on-chain metrics, including active addresses and transaction volumes, which have shown steady growth over recent weeks. These indicators point to healthy network activity and sustained interest from both retail and institutional holders.

As Ethereum continues to trade in a tightening range, the golden cross formation may serve as the catalyst for the next leg higher. Traders are advised to watch for confirmation of bullish continuation patterns before entering new positions.