Ethereum Gears Up as Trader Bets Against Golden Cross Setup

Trader 0xcB92 shorts 50K ETH worth $122M despite golden cross signals, showing high conviction amid looming volatility.

Ethereum's historical golden crosses in 2024 triggered 35% rallies, and a similar setup now hints at another potential breakout.

ETH shows signs of recovery after bottoming at $1,300 in March, consolidating near $2,470 as multi-year patterns suggest more upside.

A seasoned trader has drawn attention after shorting $122 million worth of Ethereum, according to on-chain tracker Lookonchain. The trader, identified as 0xcB92, initially held a $26 million unrealized profit on his position. However, he chose not to exit. Instead, he doubled down, adding another 10,000 ETH to his existing short. Currently, his total short position sits at 50,000 ETH. His profits have now dwindled to just $13.9 million. This move signals bearish conviction even as Ethereum hovers above key technical levels.

However, technical indicators suggest a potential bullish breakout. Cipher X recently highlighted that Ethereum could soon print a golden cross. This occurs when the 50-day EMA crosses above the 200-day EMA. Unlike Bitcoin, Ethereum has historically rallied following golden crosses. In Q1 and Q4 of 2024, ETH surged over 35% within a month after similar setups. Hence, current technical conditions could trigger a strong upward move.

Source: Cypher X

Moreover, Ethereum’s recent price history reflects a classic boom-bust-recovery cycle. In December 2024, ETH traded near $2,400 before rallying sharply. It surged above $4,000 in early January 2025 and peaked around $4,400. Trading volume spiked during this parabolic run, signaling intense bullish momentum.

Heavy Correction Before Stabilization

A severe correction followed the January peak, dragging ETH to $2,200 by mid-March. It lost almost 50% of its value within weeks. The EMA-200 acted as temporary support but eventually broke. In late March, ETH bottomed out at $1,300, a key accumulation zone.

Since April, Ethereum has rebounded. It reclaimed the $2,000 level and began consolidating between $2,400 and $2,800. Both the 50-day and 200-day EMAs are now flattening. The current price near $2,470 tests the upper end of this range.

Multi-Year Patterns Suggest More Upside

Crypto Rover notes Ethereum is repeating multi-year patterns. A “final retest” phase around late 2024 mirrors the 2020 structure. Back then, ETH exploded after retesting $400 and soared to $4,800. Currently, a similar retest around $2,000 has already triggered upward momentum.

Source: Crypto Rover

Moreover, Ethereum's historical four-year cycles suggest that the asset could be in the early recovery phase. Consequently, if the structure holds, Ethereum might break above $3,000 soon. All indicators point to an explosive move—either direction. Traders remain divided, but volatility is imminent.

The post Ethereum Gears Up as Trader Bets Against Golden Cross Setup appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.