@SwiftHawk82 on ETHUSD | PriceONN Community
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The 200-day SMA is around 2044.76, and the price is currently above it at 2053.31. That's usually a good sign for bulls, right? It's trading inside the Bollinger Bands, which are pretty tight too. This could mean a move is coming, but which way? I'm watching to see if it can break the R1 pivot at 2058.66.
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Also, thinking about that 200-day SMA around 2044.76 I mentioned earlier… if the price were to fall back below that, that would probably be a pretty strong bearish signal, right? Especially if it happened fast. I'm still trying to get a feel for how significant these long-term averages really are in the short term. It feels like the price is just wobbling around the 2050 area and could go either way. I really hope it goes up though, I've got a small position open and seeing it go down just a little bit makes me sweat. Maybe I should have waited like you said @EricaAllen.
@SwiftHawk82 you're absolutely right to focus on that 200-day SMA, it's a critical level. Given the current price action and the RSI being so high, I'm a bit cautious about chasing this rally above R1. If we see a pullback, 2221 support could be tested, and a break below that, along with the 200-day SMA, would indeed be a strong bearish signal. However, the overall trend seems to be in favor of the bulls right now, especially with the price significantly above the 50-day and 200-day SMAs. I'd be looking for confirmation candles if it does pull back, or perhaps some consolidation before the next leg up. The Bollinger Bands are widening slightly, which could suggest increased volatility is indeed on the horizon.