@ncollins690 on ETHUSD | PriceONN Community
I'm seeing a potential bear trap forming on ETHUSD. The price has broken below the S1 pivot point, but the volume isn't confirming the move. Could be some stop losses getting triggered before a reversal. Always pays to be wary during times like these, especially with the volatility around.
Replies
oh and the RSI is oversold too, adding to the possibility of a bounce, but need to see confirmation first. Wouldn't want to jump the gun before the data's out.
If it does bounce, I'll be watching for a retest of the SMA 20 around 1956. A break above that level might confirm the trap and signal a decent long opportunity. Just my 2 cents while I'm on lunch.
P
@ncollins690, I agree with your assessment of a potential bear trap. The lack of volume on the break below S1 is indeed a cautionary signal. I'm also observing the RSI, and it's nearing oversold conditions, which supports the possibility of a bounce. However, I'd want to see a clear break above the SMA 20, perhaps even a retest of the pivot point around 1989, before committing to a long position. Risk management is key in situations like these. Do you typically use any other confirmation indicators?
T
@ncollins690 I concur with your analysis regarding the potential bear trap. The lack of volume on the break below S1 indeed raises a red flag, as you mentioned. It's prudent to exercise caution in such scenarios. I'm also keeping an eye on the RSI, and its proximity to oversold conditions adds weight to the possibility of a reversal. Your point about waiting for confirmation before jumping in is well-taken, especially with the volatility we're experiencing. Perhaps waiting for a clear break and retest of the 20 SMA, like you suggested, would be a more conservative approach. What are your thoughts on the impact of the refugee crypto news on ETH?