Ethereum has formed a golden cross against bitcoin on short-term charts, focusing market attention on the possibility of a recovery in relative strength.

On July 12, local time, blockchain outlet U.Today reported that on the ETH/BTC hourly chart, the 50-day moving average rose above the 200-day moving average.

The signal followed a period in which Ethereum outperformed bitcoin. The ETH/BTC ratio rebounded after bottoming around 0.025 on June 6 and then continued to rise against bitcoin. In that process, spot exchange-traded fund (ETF) inflows and expanded on-chain activity were cited as background factors. Robinhood's launch of a layer 2 chain that uses Ethereum as its native gas token was also presented as a factor supporting Ethereum's relative strength.

Price action is also drawing attention to whether a key resistance zone will be broken. Ethereum rebounded from its June low after several weeks of weakness that began in mid-April, then traded in a range for a while before moving above 0.027. That level overlaps with the daily 50-day moving average. Ethereum has traded below the daily 50-day moving average since April 23.

Market participants are paying more attention to whether the ETH/BTC ratio has formed a bottom than to the technical signal itself. That is because other altcoins have often shown relative strength when Ethereum outperforms bitcoin. Traders generally tend to take on greater risk when Ethereum leads bitcoin, while risk aversion strengthens in the opposite situation.

Alex Thorn (알렉스 손), head of research at Galaxy, recently referred to Ethereum's price movement against bitcoin on social media and wrote, "Can I say something?" He also pointed to a death cross on the ETH/BTC daily chart earlier this year. At the time, the market did not react strongly to the signal amid broader optimism across crypto early in the year, but the chart is drawing attention again as Ethereum's relative underperformance has continued.

A short-term golden cross does not immediately mean a trend reversal. The relative strength index (RSI) has recovered from oversold territory into neutral or positive zones across multiple time frames, but it was also noted that a price reversal has not yet been confirmed. The market is watching whether the short-term technical improvement leads to a medium-term trend shift and whether a recovery in the ETH/BTC ratio links to broader risk appetite across altcoins.

The signal is drawing attention because it shows both the possibility of a short-term technical rebound in Ethereum and whether it can regain relative strength against bitcoin. ETF inflows and layer 2-based on-chain activity emerging as linked to price action have become key variables.

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