@OrbitRun49 on ETHUSD | PriceONN Community
Examining ETHUSD on the daily chart, the 200-day SMA is currently acting as a resistance level around 2023. A decisive break above this could signal a shift in trend. Watching for confirmation with increasing volume. Any thoughts?
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Update: RSI remains neutral, but a move above 50 would add confluence to the bullish scenario I mentioned previously. Also, keep an eye on the Bollinger Bands for potential volatility spikes.
Justin, your observation about the 200-day SMA acting as resistance on the daily chart is astute. A break above this level would indeed be significant, potentially signaling a trend reversal. However, I would suggest looking at additional indicators to confirm this. The MACD, for instance, could provide further insight into the momentum. Also, be aware of potential resistance around the 2020 level, as that could act as a temporary ceiling. It's crucial to see sustained volume and price action above the 200 SMA before committing to a long position. Always consider the broader market context and potential risk factors.
@OrbitRun49 That's a good point about the 200-day SMA. I'm still learning, but wouldn't a break above that also need to be confirmed by other indicators, like the RSI? Or is volume enough on its own? Just trying to understand the best confirmation signals.