Key Points
- Ethereum’s bullish price action and golden cross may trigger a new altcoin season.
- Despite bullish price action, investors’ confidence in certain altcoins has dwindled.
Ethereum’s bullish price movement has outpaced Bitcoin over the past week. Notably, Ethereum has also recorded a golden cross, which could potentially drive its price further.
Ethereum’s Golden Cross
Ethereum’s price surged by over 8% this week, outperforming Bitcoin’s weekly gains of 3%. Over the last 24 hours, Ethereum saw a 3% climb. More importantly, a golden cross appeared on Ethereum’s chart after a year, with its 50-day SMA flipping its 200-day SMA. The last time this happened was in 2023, a period that saw a strong run for altcoins. This could suggest a new altcoin season is on the horizon.
Ethereum’s bull rally might continue, as indicated by the drop in its NVT ratio. This drop suggests that Ethereum is undervalued and could see a price increase in the coming days. The MACD technical indicator on Ethereum’s daily chart also signals a bullish market advantage. Furthermore, the Chaikin Money Flow (CMF) has registered an uptick, implying an increase in buying pressure and a potential uptrend.
Is Altcoin Season Here?
When Ethereum’s 50-day SMA flipped its 200-day SMA in 2023, altcoins rallied. Checking the altcoin season index, it stands at 86 at the time of writing. A value above 75 indicates an ongoing altcoin season. Thus, it appears that an altcoin season has indeed arrived.
Other top altcoins have responded to this development with price increases over the last 24 hours. XRP, BNB, and Dogecoin have seen price hikes of 6%, 3.3%, and 4% respectively. However, despite these bullish price movements, investor confidence in these tokens has dropped, according to Santiment. This indicates a rising bearish sentiment in the market, which could potentially impact the new altcoin season.
