Ethereum [ETH] has been showing a stronger performance compared to Bitcoin [BTC] in recent days, displaying bullish movement in its price. However, a significant development in the form of a golden cross on the altcoin’s chart has captured attention, possibly setting the stage for further price gains for ETH.
One crucial question arises amidst these developments: Could this golden cross trigger the much-awaited altcoin season?
Ethereum’s Recent Golden Cross Event
ETH witnessed a notable 8% price increase this week, surpassing BTC’s gains of 3% during the same period. Furthermore, in the past 24 hours, ETH saw a 3% surge in its value.
The more exciting news emerged with the appearance of a golden cross on Ethereum’s chart after a year. Specifically, the altcoin’s 50-day SMA crossed above its 200-day SMA, a pattern last observed in 2023.
Historically, such occurrences have coincided with bullish runs in the altcoin market. Consequently, there is growing anticipation that a new altcoin season might be on the horizon.
Moreover, signs point towards Ethereum’s bullish momentum continuing as indicated by the decreasing NVT ratio. A lower NVT ratio suggests that an asset is undervalued, signaling a potential price uptick in the near future.
Additionally, a technical analysis conducted by CryptoCrypto highlighted a bullish trend in the market through the MACD indicator.
Further affirming the positive sentiment, the Chaikin Money Flow (CMF) demonstrated an upward trend, indicating rising buying pressure and a potential entry into an uptrend.
Is the Altcoin Season Now Underway?
Referencing the 2023 instance when ETH’s 50-day SMA crossed the 200-day SMA leading to an altcoin rally, an assessment of the altcoin season index was conducted to gauge the current scenario.
At the time of assessment, the altcoin season index stood at 86, signaling a significant altcoin season in progress, given that a value above 75 indicates an active altcoin season.
It’s worth noting that other major altcoins have also mirrored this positive trend, witnessing price surges in the past 24 hours.
For instance, XRP experienced a price hike of 6%, while BNB and Dogecoin [DOGE] saw increases of 3.3% and 4%, respectively.
Interestingly, despite these price spikes, investor sentiment towards these three coins experienced a decline, as per Santiment’s data —reflecting a growing bearish sentiment in the market, which could potentially impact the new altcoin season.