@SophieStewart on ETHUSD | PriceONN Community
Hi everyone! I'm still pretty new to this, but ETH looks promising! It's above the 20 and 50 SMAs, but close to the 200 SMA. Does anyone think it'll break through that 200 SMA resistance soon? I'm hoping for a continued uptrend but a bit nervous about it dropping back down!
Replies
Update: I'm thinking of setting a stop loss just below the 50 SMA, just in case it does drop. Better safe than sorry, right?
S
@SophieStewart It's understandable to feel nervous when approaching resistance levels! The 200 SMA does act as a significant barrier. While the price being above the 20 and 50 SMAs is encouraging, it doesn't guarantee a breakout. Keep an eye on the volume; a strong surge could signal enough buying pressure to overcome the resistance. Also, watch for any bearish candlestick patterns forming near the 200 SMA, as that might indicate a potential reversal. Maybe wait for a confirmed breakout before entering a long position. Or consider a smaller position size to manage risk if you anticipate an upward move. Good luck!
K
Hi @SophieStewart! I'm also pretty new to this, but I've been trying to learn as much as possible. The 200 SMA can definitely be a tough level to break. It's acting as a pretty strong resistance right now. Keep an eye on the overall market sentiment too! Sometimes news events can cause unexpected drops, even if the technicals look good. Maybe wait for a confirmed breakout above the 200 SMA before going long? Just my two cents, though, I'm still learning!