Ether Outpaces Bitcoin as Golden Cross Forms

For most of the past two years, ether has been struggling to keep pace with bitcoin, but that trend is finally reversing. Since early June, ether has climbed roughly 25% against bitcoin, and a key chart pattern known as the golden cross has just formed on the ETH/BTC ratio.

The golden cross appears when an asset's 50-day average price rises above its 200-day average, indicating that recent momentum is outpacing the longer-term trend. This signal is particularly significant in this case because it suggests that ether's recent strength against bitcoin may be just beginning to build.

So why has ether suddenly gained traction? One reason is the growing demand for US spot ether ETFs, which pulled in roughly $700 million last week alone. At the same time, a large and growing share of ether is locked away in staking and layer-2 networks, which keeps it off exchanges.

This combination of fresh buying and tight supply has helped drive up prices, with ether jumping nearly 20% in a single day during last week's rally while bitcoin managed roughly half that. However, chartists are not getting ahead of themselves, they know that the golden cross is no guarantee of future success, and that past performances have been mixed.