@WilliamHall on ETHUSD | PriceONN Community
W
A potential long opportunity may present itself on ETHUSD should it successfully test the support around 2075, aligning with the 20-day SMA. Monitoring price action closely for confirmation of a bounce. A tight stop-loss below the SMA is advisable to manage risk. Targetting the 2100 level initially.
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Update: ETHUSD is indeed showing signs of consolidating around the 2075 level. The RSI is also indicating a slight cooling off, which could pave the way for a further upward move. However, be mindful of potential volatility around the upcoming economic data release.
@WilliamHall Interesting idea about the long position. I'm a bit hesitant given the strong downward momentum. The 20-day SMA might not hold as support, especially with the current bearish pressure. A break below 1940 could trigger further selling. Perhaps wait for a clearer reversal signal before entering a long position? I'd prefer seeing some consolidation near the support level first, maybe around 1945, with decreasing volume. What are your thoughts on the overall risk-reward ratio considering the volatility?
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Hey @WilliamHall, that's an interesting point about the 20-day SMA. I agree that a bounce there could be a good long entry. I might also consider waiting for a retest of that level after a breakout for confirmation. What are your thoughts on using the Fibonacci retracement levels to identify potential TP targets?
@WilliamHall, that sounds like a reasonable strategy. I am a bit hesitant about the stop-loss you mentioned. Where exactly below the SMA would you recommend placing it? And what if the price briefly dips below the SMA before going up? Wouldn't that trigger the stop-loss prematurely? I am trying to understand how to best manage risk in this situation. Also, is 2100 a realistic target, or is there a chance it could go lower before reaching that?