Ethereum (ETH) price may finally be ready to head upwards as the cryptocurrency recently confirmed a so-called ‘golden cross’ indicator that has historically preceded massive rallies. According to the latest data, ETH bulls may soon be eyeing the $2,080 breakout if momentum holds.
Ethereum MVRV confirms golden cross
In a Tuesday X post, seasoned crypto analyst Ali Martinez remarked that Ethereum market value to realized value (MVRV) has finally confirmed the highly-awaited golden cross formation, implying a looming bullish phase for the digital asset.
For the uninitiated, MVRV compares Ethereum’s current market value, to the average price at which all coins last moved. This helps in determining whether the asset is overvalued or undervalued.
In the same vein, the MVRV Golden Cross occurs when the short-term MVRV trend crosses above the long-term trend. Historically, it has been a sign of improving market momentum, and the potential start of a bullish phase.
In his post, Martinez forecasted that on-chain data points toward the $1,980-$2,080 area as the first resistance zone. If ETH bulls manage to break through this zone, then the next major area of resistance would be around $2,773.
Fellow crypto analyst Ash Crypto shared similar bullish sentiments for ETH. In an X post, they emphasized that ETH has finally broken the prolonged 11-month downtrend, a development which could be net bullish for altcoins.
A strong Ethereum is bullish for altcoins because ETH serves as the primary asset for much of the DeFi and Layer 2 ecosystem. As a result, rising ETH prices tend to boost liquidity and activity across the broader market.
Historically, periods of prolonged ETH outperformance, have coincided with increased capital flowing into smaller-cap altcoins, as investors seek higher potential returns. The closely tracked ETH/BTC trading pair showed signs of strength on July 14, surging to a 70-day high.
ETH network sees higher activity
Besides the encouraging technical chart patterns, ETH’s network activity is also showing bullish signs. On Thursday, on-chain data showed that Ethereum tip fees have increased by 86 percent, indicating greater network usage.
Exchange data also shows promising signs, with Gemini and Bitfinex both cumulatively recording ETH withdrawals worth about $1.24 billion. Meanwhile, Bitmine continues to inch closer to its target of holding 5 percent of the total ETH supply.
