The price of Ethereum has already doubled since its 2018 low in December.
A golden cross has been confirmed for Ethereum today, a signal which some traders believe to be extremely bullish for future price prospects.
This is the first golden cross that has happened for Ethereum since the 18th of February 2017.
If we zoom in we can clearly see that the 50-day moving average (yellow line) has crossed over the 200-day moving average (black line) on the Ethereum / USD daily Coinbase chart:
It reflects the strong price performance recorded over the past few months and many analysts would consider it to be a confirmation that the trend for Ethereum has switched from bearish to bullish.
It may also spur more buyers to enter the market, increasing the levels of buying pressure.
The most recent high for Ethereum formed at a resistance level at $183.
The price action of Ethereum has been forming a bullish market structure since early April, with both higher lows and higher highs forming.
While the price is consolidating today on the daily candle, a significant increase of 2.6% was recorded during yesterdays trading.
A follow-up wave of buying would have significantly higher chances of overcoming the resistance level at $183 given that the golden cross has formed and may lead to higher levels of buying pressure.
Prior to the golden cross forming, the price briefly dropped below a former support and resistance level at $166 in recent trading.
However, the strong price performance over the past few days has brought the price back above, and this level will likely act as support if the price were to drop from here.
- A golden cross forms on the daily chart for Ethereum, the first one since the 18th February 2017.
- Many may consider the golden cross as a confirmation that the price of Ethereum is now in an uptrend and the signal may also lead to more buying pressure.
- The key levels to monitor for Ethereum currently are $183 as resistance and $166 as potential support.
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