@painterAmit on ETHUSD | PriceONN Community
ETHUSD showing strong bearish momentum, with RSI firmly in oversold territory at 29.5. This divergence often precedes a short-term bounce. Monitoring for signs of bullish divergence on lower timeframes for a quick scalp opportunity.
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Also worth noting the price is currently below all key SMAs (20, 50, 200) confirming the strong bearish bias on higher timeframes. While an RSI bounce is likely, it's crucial to observe volume accompanying any upward move. Low volume bounces are often unreliable and short-lived. A sustained break below the Bollinger lower band at 1799.42, especially with increased selling pressure, would invalidate any short-term bullish scalping ideas and signal further downside towards 1780-1790. Always have your invalidation levels clear before entering any position, particularly in volatile crypto markets. This is not a 'buy and hold' situation.
To elaborate on that, while the D1 trend remains distinctly bearish, the current RSI reading at 29.5 is indicating extreme oversold conditions. This often sets the stage for a short-term mean reversion play. I'm closely watching H1 and M30 charts for candlestick patterns like hammers or bullish engulfing near the S1 support at 1814.65. A confirmed bounce could offer a quick scalping opportunity, perhaps targeting the daily pivot around 1822.07. However, it's crucial to remember this is a counter-trend trade, so position sizing must be conservative and stop-loss extremely tight. The larger trend is down, so any long position is inherently high risk.