Ethereum MACD Flashes Golden Cross—Price Surged 74%+ Last 3 Times

A crypto analyst has highlighted how the last three golden crosses in the Ethereum MACD led into significant price rallies. This signal has now appeared again.

In a new post on X, analyst Ali Martinez has 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 that’s generally used for identifying buying and selling points for an asset.

It involves two trendlines. The first, called the MACD line, tracks the difference between the 12-period 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 two trendlines of the MACD indicator may provide hints about where the asset could be headed next; a surge from the MACD line above the signal line can be a sign that a bullish market shift 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 trend in the MACD for the weekly price of Ethereum over the last couple of years:

In the graph, the histogram tracks the distance between the indicator’s trendlines. Earlier, this histogram was in the negative territory, indicating that the Ethereum MACD line was trading under the signal line. Recently, however, the metric has just turned into the positive zone, implying a bullish crossover may be forming.

The analyst has highlighted in the chart what happened the last few times that the MACD formed this type of crossover for the cryptocurrency’s weekly price. “The last three times the MACD printed a golden cross on Ethereum $ETH, the price surged 130%, 74%, and 98%,” explained Martinez.

It now remains to be seen whether the signal in the indicator will hold for Ethereum this time, and if a rally anywhere close to the level of the last few ones will follow.

In some other news, ETH’s latest surge has meant that its price has reclaimed a key cost basis level, as on-chain analytics firm Glassnode has pointed out in an X post.

As displayed in the above graph, Ethereum has surged 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 months old investors. “So far, this structure is consistent with a bear market relief rally, comparable to the bounces observed in Q3-Q4 2022, rather than a structural trend reversal,” noted Glassnode.

Ethereum closed in on the $2,400 level on Tuesday, but its price has since retraced to $2,320.