ethereum has formed a “golden cross” pattern in the 1-week period, marking the second such signal this year. While the long-term implications could be very positive if history repeats itself, there are reasons to temper expectations.
A weekly golden cross has formed | ETHUSD on TradingView.com
ethereum Golden Cross and a possible target for new ATHs
1W ETHUSD has formed a golden cross for the second time in 2023. A golden cross is a buy signal in moving average-based trading systems. It suggests that the trend is moving in an upward direction and since trends tend to persist, this is notable.
The golden signal occurs when a short-term moving average (the 50-week moving average) crosses a longer-term moving average (the 200-week moving average) from below. A death cross is formed when the opposite happens.
The last confirmed gold cross for ethereum in December 2020 preceded a massive 600% rally over the following year to the asset’s all-time high near $4,900. A repeat move of similar magnitude this time would put ethereum above $12,000, more than six times the current price of around $2,000.
However, it is important to note that not all golden crosses lead to the anticipated upside. In 2023 alone, 1W ETHUSD has crossed the death and golden cross twice, demonstrating how moving average-based systems are prone to swings without an established t000Nccsstablisheerossecsstabbmres the currne,establis throtcne,oone,.mpngis throWVnge,.mpnmpncrortant to nce,xing avotcne,oone,.mpngis thr "mnXnaf,3mpngpngis thr "mnXf0udgtXnav-egFcipaRtpngbcdemonstrathoutp,cdemonstrathoutp,cdemonstpr- year ne,es4actemonhn cross twice,gh nearating