The Ether Precision Charts (ETH), the native symbol of the Ethereum platform, formed on Monday the high signal pattern known as Gold Cross or gold cross, the first occurring with this criptomoeda since February 2017. This pattern generally suggests a change in the trend and the beginning of a new bull run.
After a 95% retreat from its highest point in December 2017, the asset seems to have found the fund in mid-February this year, when the price began to register higher casualties. After that, ETH embarked on a vigorous escalation that raised cryptoactive's price from about $ 100 in early February to over $ 257 at the time this article was written, representing a growth of 157%.
However, these are not the only good news for the second cryptomeda by market capitalization. In the early hours of Monday morning, Ether made the first Golden Cross or Golden Cross since February 2017, which could signal a change in feeling, from low to high in the medium or long term. This suggests that traders will be more optimistic when it comes to trading long positions or buying, than positions for sale or short selling.
As we had previously commented in Criptonoticias, the gold crosses are composed of two trend indicators called exponential moving averages (EMA). The averages mentioned take as base value the closing of each period and divide it by the adjustment value of the merchant. That is, in the case of a 20-day MME, the tool will create a line in the average of the chart, for each value, the price of the last 20 days.
O Gold Cross is produced by crossing two averages, one slow and one fast. The EMA of 50 (fast and green on the chart) is equivalent to the average of 50 days back in time. It is considered a fast average because it is generally more sensitive to asset movements than its counterpart, the EMA 200, so it is more price-adjusted in times of volatility.
Next is the EMA of 200 (slow and red) that refers to 200 days of closing and represents the feel of the asset. When the price is above the average of 200 days, it is said that the asset is in a bullish trend and, if it is below, it will be in a bullish trend. It is commonly known as a slow moving average, since it is generally not closely linked to price fluctuations and acts as a support or considerable resistance when it comes to any momentum.
A bullish line of both trade curves usually predicts an increase in the odds for market operators who invest more in prices. This type of signals can occur in any temporality, the most relevant and important being those that occur in longer periods, since they expose the state of the general tendency.
The last time ETH presented these characteristics in similar market situations in 2017, the price of cryptocurrency faced an increase of more than 12,000% in that year. Although previous returns are not necessarily future indicators, this type of event marks a before and after trend.
All these elements, along with a decrease in correlation levels for annual minimums over Bitcoin (BTC), may indicate that Ether may be seeing signs of recovery in the medium term. It remains to be seen whether these facts will be enough to make the encrypted currency "to the moon" take off, as traders call a bullish momentum that remains in time.