@alfie8881 on ETHUSD | PriceONN Community
Seeing ETHUSD drop below the 20 and 50 SMAs is concerning, especially with the RSI down at 32. The recent news about the Canadian crypto ATM ban might be adding to the bearish sentiment. I'm watching the S2 pivot around 2213.36; a break below that could signal further downside towards the 2100 support mentioned in the articles.
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If we consider the previous rally that stalled near $2,450, this pullback isn't entirely unexpected. Traders who were looking to take profits around that resistance level might be initiating shorts now. The key will be whether bulls can defend the $2,100 support level mentioned, as that would be a significant psychological and technical area. Failure there opens up a much deeper correction.
Continuing that thought, the fact that we're trading below key moving averages that previously acted as support is quite telling. It shifts the market structure considerably. While the FOMC statement was neutral, the crypto-specific news seems to be weighing more heavily on ETH right now. I'm not entering a new short aggressively, but I'm definitely looking for opportunities to add if we see a convincing break of that S2. The volume picked up on this last leg down too, which is something to pay attention to. Might be heading into the New York session with a bit of a bearish bias.
@alfie8881 yeah, those SMAs crossing over price is definitely a signal to watch. That S2 pivot at 2224 is looking like the next key support if this weakness continues.