Ethereum - The Golden Cross is a short-term contrarian signal
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.
Comment:
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.