A cryptocurrency analyst highlighted how the last three Ethereum MACD golden crosses led to a significant price rise. This signal has now reappeared.
Ethereum MACD just saw a potential golden cross
In a new article on X, analyst Ali Martinez shared a technical analysis (TA) signal forming in Ethereum’s 1-week price. The signal in question is related to the Moving Average Convergence/Divergence (MACD), a technical indicator typically used to identify buy and sell points for an asset.
This involves two trend lines. The first, called the MACD line, tracks the difference between the 12- and 26-period exponential moving averages (MA) of the asset’s price. Meanwhile, the other level, known as the signal line, is the 9-period EMA of the MACD line.
The interactions between the two trend lines of the MACD indicator can provide insights into where the asset might go next; a rise in the MACD line above the signal line may be a sign that a bullish market move may be occurring. On the other hand, the reverse crossover can be a bearish signal.
Now here is the chart shared by Martinez that shows the MACD trend for the weekly Ethereum price over the past two years:
In the chart, the histogram tracks the distance between the indicator’s trend lines. Previously, this histogram was in negative territory, indicating that the Ethereum MACD line was trading below the signal line. However, recently the metric just moved into the positive zone, implying that a bullish crossover could be forming.
The analyst highlighted in the chart what happened the last few times the MACD formed this type of crossover for the weekly cryptocurrency price. “The last three times the MACD printed a golden cross on Ethereum $ETH, the price jumped 130%, 74%, and 98%,” Martinez explained.
It now remains to be seen whether the indicator signal will hold this time for Ethereum and whether a rally close to the level of the latest levels will follow.
Furthermore, ETH’s latest rise meant its price returned to a key cost base level, as highlighted by on-chain analytics firm Glassnode in an article
As the chart above shows, Ethereum has surpassed the cost base of buyers 1-3 months ago, but it still remains below the acquisition level of investors 3-6 months ago. “So far, this structure is consistent with a bear market relief rally, comparable to the rebounds seen in the third and fourth quarters of 2022, rather than a structural trend reversal,” Glassnode noted.
ETH Price
Ethereum moved closer to the $2,400 level on Tuesday, but its price has since fallen back to $2,320.
