A cryptocurrency analyst highlighted how three recent golden crosses on Ethereum’s MACD index led to significant price increases. This signal reappeared.

Ethereum MACD just saw a potential golden cross

In the up-to-date one post on X, analyst Ali Martinez shared a technical analysis (TA) signal forming in the 1-week Ethereum price. The signal in question is related to the Moving Average Convergence/Divergence (MACD), a technical indicator commonly used to identify the buy and sell points of an asset.

It includes two trend lines. The first, called the MACD line, tracks the difference between the 12-period and 26-period exponential moving average (MA) for the asset’s price. Meanwhile, the second level, called 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 clues as to where an asset may be heading; a rise from the MACD line above the signal line can be a sign that a bullish market reversal may occur. On the other hand, a reverse transition can be a bearish signal.

Here is a chart shared by Martinez that shows the MACD trend of Ethereum’s weekly price over the last few years:

On the chart, the histogram tracks the distance between the indicator’s trend lines. Previously, this histogram was in the negative area, which indicated that the Ethereum MACD line was trading below the signal line. However, recently this indicator has just entered the positive zone, which suggests that a bullish transition may be forming.

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

Time will tell if the signal on the indicator will hold for Ethereum this time and if there will be a rally near the levels of the last few.

In other news, ETH’s recent rally means its price has regained a key cost baseline, as noted by analytics firm Glassnode in X post.

As you can see in the chart above, Ethereum has risen above the cost basis of buyers 1 to 3 months ago, but still remains below the acquisition level of investors existing 3 to 6 months ago. “So far, the structure resembles a bear market expansion, comparable to the rebound seen in Q3-Q4 2022, rather than a structural trend reversal,” Glassnode noted.

ETH price

Ethereum closed at $2,400 on Tuesday, but has since recovered to $2,320.