Home / Analysis / Crypto / Technical Analysis / Ethereum Price Crosses $3,600 – MACD Gives Bullish Signal Historically Resulting in 70% ETH Increase

Ethereum Price Crosses $3,600 – MACD Gives Bullish Signal Historically Resulting in 70% ETH Increase

Last Updated April 8, 2024 1:31 PM
Valdrin Tahiri
Last Updated April 8, 2024 1:31 PM

Key Takeaways

  • Ethereum’s daily time frame MACD has given a bullish signal.
  • Previously, the signal resulted in two increases of roughly 70%.
  • Will the third MACD signal yield a similar ETH price increase?

The ETH price has fallen since its yearly high of $4,093 on March 12. Despite the decrease, the price still trades above an important long-term horizontal support area.

ETH  bounced on April 4 and accelerated its rate of increase today, causing the MACD to give a bullish signal. Previously, this signal led to significant price increases, leading traders to wonder if it will result in a similar outcome again.

What Is Stopping Ethereum From an All-Time High?

The weekly time frame chart shows that the ETH price trades above an important horizontal area at $3,600. ETH began a rapid upward movement in January, leading to the creation of six successive bullish weekly candlestick. This led to a high of $4,093 before the price fell.

Despite the drop, ETH still trades above the $3,600 area and has not reached a weekly close below it yet. The area has intermittently acted as both support and resistance (red & green icons) since April 2021.

Ethereum Trades Above Long-Term Resistance
ETH/USDT Weekly Chart | Credit: TradingView

On the other side, ETH faces resistance at the 0.786 Fib retracement resistance level of $4,020, which caused a rejection in March (red circle).

The weekly MACD and RSI do not confirm the trend’s direction. The RSI is in bullish territory but falling while the MACD is losing momentum.

So, a look at the daily time frame is needed to determine the future trend’s direction.

ETH Price Prediction: MACD Gives Bullish Signal

The daily time frame MACD gives an interesting bullish signal that previously led to a significant price increase. The signal occurs when the MACD makes a bullish cross and then moves above 0.

It has occurred twice before in the last 12 months (yellow), leading to increases of 70% each time. The increases lasted for 84 and 35 days, respectively. A similar increase will take the ETH price to a new all-time high of $6,200.

Ethereum's MACD Gives Bullish Signal
ETH/USDT Daily Chart | Credit: TradingView

The ETH price has broken out from a descending resistance trend line, aligning with the positive prediction, since similar breakouts occurred during the two previous bullish MACD signals.

The price now attempts to move above the $3,650 minor resistance area, which is the final one before the long-term resistance of $4,020 outlined in the previous section.

ETH Will Reach a New All-Time High if History Repeats

Unlike Bitcoin, the ETH price has not reached its all-time high yet. However, the daily MACD has given a bullish signal that has preceded significant increases in the past. If history repeats, the ETH price will begin an upward movement soon and reach a new all-time high.


Was this Article helpful? Yes No