Ethereum Price Forms Golden Cross Buy Signal On Weekly Chart
Although Ethereum prices are down approximately 20% off their 2023 highs, they remain more than 60% below their record peak in 2021. Last week’s launch of enforcement actions against an already weakened industry by the United States SEC further diminished hopes for recovery across the crypto market.
In contrast to other coins that plummeted by over 50% in just days, Bitcoin and Ethereum displayed resilience as two top cryptocurrencies based on market cap. ETHUSD performed particularly well amidst this bearish environment; it formed a golden cross between the 50-week moving average and the 200-week moving average.
A golden cross is formed when using a two-moving average system where a shorter timeframe crosses over longer timeframe span resulting in a buy signal while death cross occurs during opposite crossover leading to long-term sell signals being nullified.
A golden cross appears | ETHUSD on TradingView.com
Moving Averages To Save Crypto From Further Collapse?
When using moving averages as tradingSponsored Product signals, price making it above or below these averages can be another indication that trend is strengthening besides crossovers. In addition to crossing-over both MAs (moving averages), ETHUSD remains significantly higher than both its MA values at present.
The slope of moving averages could also serve as an indicator similar to trend lines; currently, Ether’s upward trajectory continues with its 200-week MA pointing upwards while its 50-week MA begins turning directionally upward too.
During the last golden cross, Ethereum climbed another 680% before reaching its peak. In contrast, when ETHUSD pushed above both moving averages in 2020, Ether rallied by over 1,700%. The current price action has only brought Ethereum under 5% from the moment it made it above these two averages.
Past performance is not a guarantee of future results; however, if ETHUSD remains above both MAs despite macro and regulatory pressure on altcoins, there could be another impressive increase in prices around the corner. It’s important to note that any day now we may see another death cross following this bullish buy signal.
With all the noise in the market right now, everyone has entirely missed the fact #Ethereum has formed a weekly golden cross pic.twitter.com/ylNwp3DEUI
— Tony “The Bull” (@tonythebullBTC) June 12th ,2023
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