Ethereum’s Golden Cross Sparks Off Altcoin Season: A Possible First Sign!

Key Points:

• Ethereum's bullish price surge and golden cross signal a potential new altcoin season.
• Despite this, investor confidence in certain altcoins has waned.

Ethereum's Bullish Momentum

Over the past week, Ethereum's price has outpaced Bitcoin's, surging by over 8%. It has also formed a golden cross, where the 50-day Simple Moving Average (SMA) crosses above the 200-day SMA, indicating potential further price appreciation. This is the first golden cross for Ethereum since 2023, which preceded a strong altcoin bull market.

Altcoin Season Indicators

Ethereum's declining Network Value-to-Transactions (NVT) ratio suggests it is undervalued and poised for a price increase. Additionally, the Moving Average Convergence Divergence (MACD) indicator shows a bullish market advantage, while the Chaikin Money Flow (CMF) indicator indicates increasing buying pressure and an uptrend.

Is Altcoin Season Upon Us?

The altcoin season index currently stands at 86, indicating an ongoing altcoin season. Top altcoins like XRP, BNB, and Dogecoin have responded with price increases in the last 24 hours.

Investor Sentiment

Although these price gains suggest a bullish market, investor confidence in certain altcoins has declined, according to Santiment. This indicates a potential bearish sentiment in the market, which could temper the impact of the new altcoin season.