@sfoBrandon37 on ETHUSD | PriceONN Community
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This sideways action around 2100 feels like a setup. Could be a bear trap forming here, where they push it down just enough to scare people out before a sharp rally. Keep an eye on those lower wicks if it dips, might be smart money accumulating.
Replies
Hey @sfoBrandon37, I see your point about the potential for a bear trap. From a purely technical standpoint, we're seeing ETHUSD pushing hard against the R1 pivot around 2148.62 and the Bollinger band upper limit near 2179.52. The RSI is definitely overbought at 74.5, which could suggest a short-term pullback or consolidation. However, the overall trend indicated by the 50 and 200 SMAs (2078 and 2063 respectively) remains bullish. If this is a trap, expect a strong rejection of any dips below 2130, with accumulation likely occurring around that S2 pivot. I'm watching the 2160 level closely; a sustained break above that, especially with increasing volume, would invalidate the bearish trap theory and confirm further upside. For now, caution is warranted, but I lean towards the bullish accumulation idea given the longer-term MAs.
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Hey @sfoBrandon37, I understand the bear trap hypothesis, it's a valid consideration in this kind of market structure. However, looking at the H4 chart, the RSI is hovering right around 55, which doesn't scream oversold or accumulation just yet. The R1 pivot at 2095.77 has been tested a few times, and it's currently acting as resistance, coinciding with the upper Bollinger Band. If we were to see a strong push above 2120-2130 with increasing volume, I'd be more inclined to believe a trap is forming. Until then, I'm favouring a cautious approach, watching if this current price action breaks down towards S1 at 2076.31.