A crypto analyst has highlighted how the last three golden crosses in the Ethereum MACD have led to significant price increases. This signal has now reappeared.
Ethereum MACD just spotted a potential golden cross
In a new after on X, analyst Ali Martinez shared a technical analysis (TA) signal forming in the 1-week price of Ethereum. The signal in question is related to the Moving Average Convergence/Divergence (MACD), a technical indicator generally used to identify buy and sell points for an asset.
These are two trend lines. The first, called the MACD line, tracks the difference between the 12- and 26-period exponential moving averages (MAs) for the asset’s price. Meanwhile, the other level, known as the signal line, is the 9-period EMA of the MACD line.
Interactions between the MACD indicator’s two trend lines can provide clues as to where the asset might be heading; a rise in the MACD line above the signal line can be a sign that a bullish market shift may be taking place. On the other hand, the reverse crossover could be a bearish signal.
Here is the chart shared by Martinez showing the trend in the MACD for Ethereum’s weekly price over the past few years:
In the chart, the histogram tracks the distance between the indicator’s trend lines. Previously, this histogram was in the negative area, indicating that the Ethereum MACD line was trading below the signal line. Lately, however, the metric has just moved into positive territory, suggesting a bullish crossover may be developing.
The analyst has highlighted in the chart what has happened the last few times that the MACD formed this kind of crossover for the weekly price of the cryptocurrency. “The last three times the MACD printed a golden cross on Ethereum $ETH, the price rose 130%, 74% and 98%,” Martinez explains.
It now remains to be seen whether the signal in the indicator will hold for Ethereum this time, and whether there will be a rally that will follow anywhere near the levels of the last few.
In other news, ETH’s latest surge has led to its price regaining an important cost base level, as on-chain analytics firm Glassnode noted in an after.
As shown in the chart above, Ethereum has risen above the cost basis of the buyers from 1 to 3 months ago, but it still remains below the acquisition level of the 3 to 6 month old investors. “So far, this structure is consistent with a bear market relief, similar to the rebounds observed in the third and fourth quarters of 2022, rather than a structural trend reversal,” Glassnode said.
ETH price
Ethereum closed at the $2,400 level on Tuesday, but the price has since returned to $2,320.