Ethereum - The Golden Cross is a short-term contrarian signal
Updated
Plotted the daily 200/50 "golden cross" MA on the weekly chart (roughly divide daily input by 7 and rounded).
We can observe that the short-term PA immediately following a cross is is always in the opposite direction of the bias.
In other words; a bearish cross leads to a bounce and a bullish cross leads to a correction, before the strong price movement in the direction of the cross.
Currently, Ethereum experienced a 33% correction following a bullish cross in mid February. S/R analysis shows a strong potential bottom in the 180 - 195 region.
Therefore, I am keeping my bullish bias here for Ethereum.
We can observe that the short-term PA immediately following a cross is is always in the opposite direction of the bias.
In other words; a bearish cross leads to a bounce and a bullish cross leads to a correction, before the strong price movement in the direction of the cross.
Currently, Ethereum experienced a 33% correction following a bullish cross in mid February. S/R analysis shows a strong potential bottom in the 180 - 195 region.
Therefore, I am keeping my bullish bias here for Ethereum.
Note
Note; Due to rounding issue after division, the cross date on the weekly may differ from the daily by roughly 3-5 days, though you can verify that the analysis is still valid using 200/50MA on the daily.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.