@hiker717 on ETHUSD | PriceONN Community
This drop on ETHUSD is pretty sharp, almost 4% down. Volume seems to be picking up on the sell-off though, which isn't great. It looks like it's confirming the bearish move rather than being a false breakout or anything. The RSI is deep in oversold territory at 29, which normally signals a bounce, but this volume is concerning me. Need to see if that 2057 support level holds.
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Thinking more about this ETHUSD price action and the news. The jobless claims number was a bit higher than expected, suggesting potential weakness in the US economy. That could be a bearish driver for risk assets like ETH. However, that breaking news about Ethereum potentially outperforming Bitcoin due to quantum threats is HUGE. If that narrative takes hold, it could completely override short-term bearish indicators. I'm starting to lean towards a potential reversal play here if we can hold above that 2057 support. The RSI being so oversold is definitely a factor, and if the quantum news gains traction, we could see a very aggressive bounce. I'm watching closely to see if buyers step in with conviction around current levels, maybe even trying to push back towards the 20 SMA. This geopolitical stuff is also a wildcard, but the crypto-specific news feels more impactful for ETHUSD right now.
Actually, re-evaluating the volume here. While it did spike on the initial drop, it's starting to taper off as we approach that 2057 level. This could mean the sellers are losing steam, or it could just be a temporary pause before another leg down. The fact that we haven't seen a massive surge in volume on the dips is what's making me hesitate to fully commit to a bearish outlook yet. Keep an eye on the 20 SMA at 2130 too, that's a big psychological level that's been broken.