@mianguyen on ETHUSD | PriceONN Community
From a technical perspective, ETHUSD's recent surge has pushed it beyond the upper Bollinger Band, indicating a possible short-term overextension. The 200-day SMA at 2011.29 is now acting as a key support level. A retracement towards this SMA could provide a buying opportunity for long-term investors. Furthermore, the divergence between price and momentum indicators on the H4 chart warrants caution. It would be prudent to monitor price action closely for signs of exhaustion before committing to further long positions. Consider utilizing Fibonacci retracement levels to identify potential areas of support and resistance during the anticipated pullback.
Replies
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@mianguyen I concur with your assessment regarding the 200-day SMA acting as a key support level. However, given the current market volatility, I would suggest waiting for a more pronounced retracement before considering a long-term investment. A confirmation signal, such as a bullish candlestick pattern, could provide added assurance.
@mianguyen good point about the 200-day SMA as a buying opportunity. I agree that a retracement could be a good entry for long-term investors. However, I'm wondering if the current momentum could push it higher before any significant pullback. Maybe scale in slowly instead of waiting for the 200 SMA?
D
Hello @mianguyen, your point about ETHUSD potentially being overextended after the recent surge is interesting. I'm still learning, so could you explain further how the upper Bollinger Band indicates that? I understand the 200-day SMA is a key level, but I'm not sure about the retracement part. If it does retrace to 2000-2010 area, what would be a good entry point for a long-term buy in your opinion? I really appreciate your insight!
S
Thanks @mianguyen, that's a helpful perspective. I hadn't considered the upper Bollinger Band as a potential signal of overextension. If the price does retrace towards the 200-day SMA, around 1999.79, would you see that as a strong buy signal, or would you want to see confirmation from other indicators as well?
G
@mianguyen, interesting point about the 200-day SMA acting as support. I'm a bit skeptical, tbh. Given the current bearish momentum and the break below the lower Bollinger Band, a bounce at that level feels more like wishful thinking than a high-probability trade. Plus, with the overall market sentiment being risk-off, ETHUSD might just keep bleeding. I'd be cautious about calling that a buying opportunity just yet. Maybe wait for a stronger confirmation before jumping in long. What are your thoughts on the volume?