Ethereum (ETH) has recorded an impressive 6.3% gain today, July 10, as the broader cryptocurrency market surged following Bitcoin’s new all-time high level. An even bigger rally could be on the way after the Ethereum price created a golden cross pattern, which could push it to $4,000.
Ethereum Price Eyes $4,000 Amid Golden Cross and Bullish Flag Patterns
The daily timeframe chart shows that the Ethereum price has remained relatively stable since May, when it reached a multi-month high of $2,873. This was a significant level, as the coin had been trading at $1,390 just a few weeks earlier.
The ongoing consolidation is part of Ethereum’s recovery. This is part of the bullish flag pattern that has been forming over the past few months. A bullish flag consists of two key parts: a flagpole and a consolidation.
The profit target in a bullish flag is calculated by measuring the flagpole height and then the same distance from the pattern’s upper side. In this case, the pattern points to a surge to $4,015, a few points below last year’s high of $4,080.
Ethereum price has also confirmed the highly bullish pattern known as a golden cross. This pattern forms when the 50-day and 200-day moving averages intersect, typically indicating that bulls have prevailed.
The spread between the two averages has been narrowing, meaning that the cross is about to trigger a major move. As such, the combination of a bullish flag and a golden cross is a sign that the coin is gearing towards a major bull run.
The bullish Ethereum price forecast will become invalid if it drops below last month’s low of $2,125. A drop below that level will raise the possibility of the coin falling to the year-to-date low of $1,390.
Trump Blue-Chip ETF Hype Further Boosts $4K ETH Chances
One of the main catalysts for the ongoing Ethereum price recovery is the recently announced blue-chip crypto ETF. Ethereum and Bitcoin will comprise 80% of the fund, with altcoins like Cronos and Solana taking the rest.
If successful, it means that there will be more demand for Ethereum at a time when the supply on exchanges is falling.
Data shows that demand for the spot Ethereum ETF is in an upward trajectory. These funds have had inflows in the last nine consecutive weeks, the longest streak on record.
The cumulative inflow has increased to over $4.5 billion, while all funds now hold more than $11 billion in assets.
Further data show that the open interest in the futures market continues to soar. The interest soared to over $37 billion, the highest level since June 13, and up from last month’s low of $23 billion.
The ongoing Ethereum price consolidation could be the calm before the storm, before the next bull run. It has strong fundamentals, as evidenced by ETF inflows and technical indicators, including a bullish flag and a golden cross, which point to further gains.
Frequently Asked Questions (FAQs)
The most likely scenario is where the ETH price stages a strong comeback because it has formed a golden cross and a bullish flag.
Technicals suggest that the coin has more upside, potentially to the key resistance level at $4,000.
The primary catalyst for the ETH price is the ongoing ETF inflows and the recent announcement of a blue-chip ETF.
crispus
Crispus is a seasoned Financial Analyst at CoinGape with over 12 years of experience. He focuses on Bitcoin and other altcoins, covering the intersection of news and analysis. His insights have been featured on renowned platforms such as BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com.
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Source: https://coingape.com/markets/ethereum-price-nears-golden-cross-price-4000/