@gamer455 on ETHUSD | PriceONN Community
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Okay, I just went ahead and bought a small position in ETHUSD around 2040. Honestly, I saw that big drop and thought maybe it was a liquidity grab or something. It felt like a good time to 'buy the dip' since it's been falling so hard all day. My target is to get out if it hits 2090, that seems like a reasonable profit for now. I've set my stop loss really tight though, like at 2030. I don't want to lose too much if this keeps going down. This is my first time trying to catch a falling knife so wish me luck lol.
Replies
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Hey @gamer455, I see you bought ETHUSD around 2040. That's a bold move to buy the dip there! I was watching it too and honestly, I'm a bit nervous about that level holding. The price action today hasn't given me much confidence, and I'm worried it might just keep sliding. Are you planning on using a stop loss?
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Hey @gamer455, I saw that doji candle forming on the 1-hour chart too. It usually means indecision in the market. Given how much ETHUSD has been dropping, it could be a sign that the sellers are losing steam, but it's too early to tell for sure. I'd be careful entering a long position just yet.
Hello @gamer455, I understand the temptation to catch a falling knife, but buying at 2040 with such a bearish trend on ETHUSD seems quite risky, even with the intention of a quick scalp. The SMAs are still pointing downwards, and the 50-day is crossing below the 200-day, which is a strong bearish signal. While a short-term bounce is always possible, especially after a significant drop, the overall structure suggests further downside potential. I would have preferred to see some consolidation or a clear bullish reversal pattern forming before considering a long entry. Perhaps waiting for price to test the lower Bollinger Band around 1985 would offer a more defined risk/reward. Be careful with those dips!