@snair583 on ETHUSD | PriceONN Community
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Good morning everyone. Watching ETHUSD overnight, it looks like we had a bit of a liquidity grab below 2200. Price is currently trying to bounce but RSI is still low around 36. I'm wary of this move being a dead cat bounce, especially with that Australian unemployment rate rising. Could be a trap for new buyers.
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Just looking at the chart again, price is struggling to get past the 2200 level, which is also near the R1 pivot. The daily SMA 20 is sitting above at 2237. This looks like a good area for sellers to step in again. Considering the FTX news about distributions, it might inject some selling pressure as people cash out. I'm definitely not seeing a strong bullish case right now. If we break below the S1 pivot at 2189, I'd expect further downside, maybe even testing that 2152 area where the 200 SMA is. Need to see some conviction before considering any long positions.
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Yeah, I agree with @redStorm7. This bounce feels weak. The wholesale price data also suggests inflation is still sticky, which might not be good for risk assets like ETH. I'm not looking to go long here at all. Waiting for a clearer signal or maybe a retest of the lower pivots.
Hey @snair583, I see your point about that 2200 resistance and the SMA 20 above. It definitely looks like sellers are trying to step in there. The way it's struggling to break higher makes me nervous too. I was hoping for a cleaner move up after that dip below 2200, but this hesitation is worrying. I'm not sure if it's a trap or just slow accumulation before a bigger move. Maybe waiting for a clear break above 2200 or a rejection and confirmation of a downtrend is the safest bet right now. Don't want to get caught in fakeouts.