@oliver5428 on ETHUSD | PriceONN Community
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I'm wondering how much weight to give the 200-day SMA right now. It's hovering around 2013, but the price action seems more influenced by the recent bullish momentum. Maybe wait for a clearer signal before making any big moves. Anyone else looking at that?
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The 200-day SMA is definitely something to consider, @oliver5428. While recent price action may seem disconnected, those longer-term averages often act as significant psychological levels. However, in a strong downtrend, they can be easily broken. I'd suggest looking at the convergence of multiple indicators rather than relying solely on the 200-day SMA. Check the RSI and MACD for confirmation. If they align with the SMA, the signal becomes stronger. Also, consider the overall market sentiment – is there any news or event driving the price down further?
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@oliver5428, that's a really good point about the 200-day SMA! I've been looking at that too, especially with it currently around 1941.12. It feels like such an important long-term indicator, but with the current price at 2053.65 and such strong bullish momentum, it almost seems... less relevant for short-term swing trades? I mean, the price is so far above it right now. I'm trying to figure out how to balance those longer-term signals with the immediate price action. Do you think it becomes more important if we see a pullback, maybe as a potential support zone? It's tricky when the trend is so clearly bullish in the shorter term!