Ethereum (ETH) is showing signs of a potential shift in momentum against Bitcoin (BTC), after underperforming it for much of 2024 and 2025. The ETH/BTC ratio is near multi-year lows. One key technical indicator suggests that might change in the near future.
On the Binance exchange, the 50-day simple moving average (SMA) of ETH/BTC has crossed above the 200-day SMA – a bullish sign. When this crossover goes the other way, it’s known as a “golden cross.” Technical traders see it as a highly popular and powerful signal that momentum is starting to move towards the asset with the shorter moving average.
A golden cross occurs when the short-term moving average—most commonly, the 50-day—crosses above the long-term moving average—most often, the 200-day. This year’s event is a promising upward trend in that direction. This pattern is commonly viewed as a bullish development, predicting the possibility of major future price gains.
Crypto Rover further emphasizes that this bullish crossover has only occurred five times on the ETH/BTC pair since 2019. This ultimately makes it a very unique and rare event in the current market.
"Only the fifth time this bullish crossover has occurred on the ETH/BTC pair since 2019" - Crypto Rover
Of the last four occurrences, three ended with Ethereum greatly outpacing Bitcoin. In 2020, this golden cross was the catalyst for Ethereum’s meteoric climb to new all-time highs. Since then, the 2021 crossover rocket-boosted the cryptocurrency into another explosive phase.
On July 27, Crypto Rover posted a side-by-side comparison chart. Visualisation of how previous golden crosses performed in ETH/BTC. In each one of these cases, Ethereum experienced major increases in value against Bitcoin.
"Only one instance failed to follow through, suggesting a strong historical bias toward bullish continuation." - Crypto Rover
Naturally, traders and investors alike are closely monitoring this newest golden cross. They’re interested to find out if this technical signal will be predictive again. We will be watching closely to see if this means 2025 is the year that finally upends the trend.
Well beyond technical indicators, wider market trends could play in Ethereum’s favor. Some analysts believe that Ethereum and Solana can gain from Ethereum being the beneficiary of a sudden reversal in Wall Street’s focus on investments.
