The daily chart shows that ETH’s exponential moving averages (EMAs) have crossed above their most relevant long-term peer – the 200-day EMA.

This crossover is known as a ‘golden cross’ and, as we have noted in previous articles, the price typically reacts positively after this technical event as most traders interpret this as a buy signal.

Golden crosses imply that the short-term trend of an asset’s price is accelerating faster than its short-term one. This favors a bullish outlook as it indicates that positive momentum is growing.

For ETH, this golden cross comes at a point when the Relative Strength Index (RSI) is already quite stretched and just got out of overbought levels. Hence, this bullish crossover could be a false positive.

One possible tell for this is a bearish divergence in the RSI. This means that the price reached a higher high but momentum is on a downtrend. Hence, the uptrend’s strength is weakening and a correction could happen soon.

This does not mean that ETH will not make a higher high, but it does increase the risk of a strong pullback. Combined with the extreme readings seen in other indicators like record-level OIs and abnormal long/short ratios, this is a perfect recipe for a big ol’ long squeeze.

Looking at the hourly chart, we can see two key areas of support to watch along with ETH’s latest resistance at $2,750 – $2,800.