A golden cross occurs when a shorter-term moving average crosses above a longer-term moving average. In this case, it indicates that Ethereum's price momentum is strengthening relative to Bitcoin's.
The formation of this pattern implies that Ethereum may be poised for a period of outperformance compared to Bitcoin. This could have significant implications for traders and investors allocating capital between the two leading cryptocurrencies.
While the golden cross is a bullish signal, traders often look for further confirmation before making significant moves. Additional technical indicators and fundamental analysis can help assess the strength and sustainability of any potential trend reversal.