Ethereum (ETH) is once again making headlines after flashing a key technical indicator known for signaling major price movements. The appearance of a “Golden Cross” on Ethereum’s price chart has captured the attention of both traders and long-term investors. The last time this pattern occurred, Ethereum’s price surged nearly 90% in less than two months. Now, with ETH holding strong above the $2,500 mark and market dynamics showing promising signs, many are asking whether a similar rally is about to unfold.
The Golden Cross is a technical chart pattern that happens when a short-term moving average, typically the 50-day average, crosses above a long-term moving average, usually the 200-day average. This crossover is widely considered a bullish signal, often indicating the start of a sustained upward trend. For Ethereum, this signal previously marked the beginning of a powerful rally. Back in November 2024, after forming a Golden Cross, Ethereum skyrocketed from around $1,800 to nearly $3,400 by the end of December—a gain of almost 90% in just seven weeks.
What made that rally even more notable was that it wasn’t driven by technical patterns alone. Broader market developments, such as growing optimism around the approval of spot Bitcoin ETFs in the United States, helped fuel a wave of investor enthusiasm across the entire cryptocurrency sector. Institutional interest in digital assets surged during that time, and Ethereum’s own fundamentals were strengthening. Rising activity in Ethereum staking, along with growing adoption of decentralized finance (DeFi) and NFT platforms, gave investors additional reasons to buy and hold ETH.
Fast forward to May 2025, and Ethereum is showing signs of a similar setup. The Golden Cross has formed once more, and some market conditions appear to echo those of the previous rally. Ethereum is currently trading above $2,500 and has been gaining upward momentum since the implementation of its recent Pectra upgrade, which introduced performance enhancements and improved scalability.
Another encouraging sign for bulls is the sharp decline in exchange reserves. According to on-chain data, Ethereum reserves on centralized exchanges have fallen to 18.7 million ETH—the lowest level in over a year. This is generally interpreted as a bullish signal because it suggests that investors are moving their coins into long-term storage rather than keeping them on exchanges to sell. Lower supply on exchanges often translates to reduced selling pressure, which can support price increases if demand remains steady or increases.
Adding to the optimism is the state of funding rates in the derivatives market. Funding rates are currently neutral to slightly negative, indicating that there isn’t an overwhelming number of leveraged long positions. This is seen as a healthy sign, as it implies the market is not overly speculative or frothy. During periods of excessive bullish sentiment, sharp corrections can occur when those positions get liquidated. The current environment suggests a more stable and sustainable rally may be possible.
While the reappearance of the Golden Cross and the underlying market indicators are encouraging, it’s important to remember that no single technical signal can predict the future with certainty. Cryptocurrency markets are known for their volatility, and external factors—such as regulatory decisions, macroeconomic trends, or geopolitical events—can quickly alter market dynamics.
Still, history has a way of influencing investor psychology. The last time Ethereum showed this technical formation, it triggered a significant wave of buying that pushed prices to multi-month highs. With exchange outflows continuing, speculative excess remaining in check, and sentiment gradually turning positive, Ethereum could very well be setting the stage for another strong upward move.
In conclusion, while past performance doesn’t guarantee future results, Ethereum’s current setup is hard to ignore. The return of the Golden Cross, coupled with favorable on-chain metrics and a neutral trading environment, points to a potentially bullish scenario. If momentum continues to build, Ethereum may soon test higher resistance levels—and perhaps even revisit its previous highs. Investors and traders alike will be watching closely to see whether history is about to repeat itself.
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