Ethereum Golden Cross Forms as Price Holds Above $2,400 Support

Ethereum's 50-day moving average crossed over its 200-day, resulting in a Golden Cross, indicating strong upswing.

ETH holds above $2,400 levels after uprally from April lows, maintaining support and structure in its current breakout.

Institutional accumulation of Ethereum is accelerating rapidly, adding strength to the technical pattern and supporting long-term bullish activity.

Ethereum confirmed a Golden Cross pattern in which the 50-day moving average crosses over the 200-day moving average. This technical occurrence is generally regarded as a turn in direction to higher momentum in market dynamics.

Golden Cross Signals Potential Trend Reversal

The recent development was brought to attention by Merlijn The Trader, who noted the crossover with Ethereum currently trading above $2,400. The technical setup resembles a similar pattern from late 2024, which preceded a notable rally. According to the tweet, "Momentum is building. Structure looks clean. Signal just fired."

Source : Merlijn The Trader

The pattern reflects a period of sustained bullish pressure, where price consistently formed higher lows and broke through resistance with strong volume. The sharply rising 50-day MA signals momentum acceleration, while the 200-day MA has begun to flatten. This alignment points to a clear shift in trend direction.

Ethereum’s price action leading to the crossover has remained steady. The asset rallied from April's lows and held above both moving averages. Analysts view the breakout as technically sound, supported by the recent clean market structure.

Historical Pattern Suggests Rally Potential

Ethereum has followed this technical pattern before, with the last crossover sparking a strong price increase. Traders are now watching closely to see if history repeats. The base around $2,000 now acts as key support, with bullish momentum pushing ETH further above both averages.

Given the strength of the current price structure and upward slope of the 50-day MA, the setup could support an extended move. While caution remains, the technical pattern alone signals a possible continuation higher. Observers are eyeing the $3,000 level as a medium-term target.

The structure remains favorable as long as ETH maintains current levels. Traders often rely on this crossover for confirmation of long-term trend changes, which aligns with current market behavior.

Institutional Activity Reinforces Technical Strength

Crypto Rover added another dimension, stating that institutional accumulation of ETH is growing at an "unprecedented rate." This growing interest from institutions may add further strength to the trend.

Increased accumulation typically reflects confidence in long-term price stability. As institutions move in, price floors often become more resilient, reinforcing technical setups like the Golden Cross.

The confluence of technical signals and market behavior underlines the relevance of the current price movement. Ethereum’s market is now positioned for a potential continuation, pending sustained support and volume.

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