Foreign media reports that after Ethereum rebounded in August, the moving average structure is gradually approaching the formation of a "golden cross." However, by the time this signal appeared, ETH had risen from around $1900 to about $2500. The market is more concerned with whether this upward trend can continue than with the technical pattern itself.
Risen from around $1,900 to $2,500
The report mentioned that ETH successively crossed the short- and medium-term moving averages, and regained the long-term trend line around $2150. This level had been exerting downward pressure for several months prior to the breakthrough, and after it was surpassed, the overall technical chart significantly improved.
The short-term moving average is currently around the range of $1,990 to $2,015 and has begun to turn upward. According to the text, the current price of ETH is about 16% higher than this range, indicating a relatively fast rebound in the earlier period.
The golden cross is more of a confirmation signal.
The so-called "golden cross" usually refers to the short-term moving average crossing above the long-term moving average, which is seen as an indication that the recent momentum is stronger than the overall trend. However, the article argues that such signals are inherently lagging. By the time this pattern is truly formed, the price has often already experienced a significant increase.
The situation with Ethereum is similar this time. Before the golden cross was fully formed, ETH had already risen by about $600 compared to the consolidation range in August. Therefore, the golden cross is more likely to be seen by the market as a confirmation of a trend, rather than the starting point for a new round of upward movement.
$2,550 becomes a short-term resistance level
The article also mentions that ETH has made multiple attempts to break through the range of $2,500 to $2,550, but has not yet managed to stabilize firmly in that range. Meanwhile, the Relative Strength Index RSI has risen to around 76, entering an overbought area, indicating that the difficulty of continued upward movement in the short term is increasing.
If there can be a significant breakthrough above $2,550 in the future, there is a chance for the price to move further towards $2,600, or even the $2,700 range. If the trend weakens, the market will first focus on the $2,400 level; once the pullback expands, the support below may fall within the $2,200 to $2,150 range, which is close to the position of the long-term moving average.
Overall, foreign media believes that the golden cross has improved Ethereum's medium-term technical prospects, but it cannot alone alleviate the pressure of a significant pullback. Compared to the pattern itself, whether ETH can hold onto the long-term trend line that has been regained after the momentum slows down may be a better indicator of whether this rebound is solid.
