@charlotte2002 on ETHUSD | PriceONN Community
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The current price action around the 200-day SMA is definitely something to watch closely. The RSI is hovering around neutral, so it's not giving a strong signal either way. I think a decisive break above 1990 could signal a continuation of the bullish trend, but failure to do so might lead to a retest of support around 1950. I am monitoring for candlestick confirmation patterns on the H4.
Replies
@charlotte2002, I concur with your assessment regarding the 200-day SMA. However, I'd add that the proximity of the Bollinger Band's upper boundary at 1990.7 creates a confluence of resistance. A decisive break above this level would require significant bullish momentum, suggesting a potential short squeeze. Conversely, failure to breach this resistance could trigger a sharp reversal, potentially targeting the lower Bollinger Band around 1963.21. I'm also monitoring the MACD for a potential bearish crossover, which would further validate a short bias. What are your thoughts on using the ATR for setting stop-loss levels in this volatile environment?