@DanielDavies56 on ETHUSD | PriceONN Community
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This ETHUSD price action today is just brutal. Came down hard from the pivot point, and now we're staring at the S2 level. RSI is deep in oversold territory on the hourly, but that doesn't mean much when the trend is this bearish. Really makes you wonder about those Fed rate hike whispers, could be impacting crypto sentiment hard right now.
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Actually, looking at the H4 chart, the RSI is showing a bit of a divergence here around 25. It's deeply oversold, but the fact it hasn't made a new low on the indicator while price has, is something to watch. I've seen this pattern before where it can precede a bounce, even if it's just a short-term relief rally. We're still well below the 200 SMA though, so any upside is likely to be capped near the 20 SMA around 2028. The news about inflation and potential rate hikes is definitely a major overhang, though. I'm hesitant to get too bullish, but I'm not closing my short completely either. Let's see if we can get a small bounce off this support.
Hi @DanielDavies56, it's understandable to feel that way given the price action. While the hourly RSI might appear oversold, you're correct to look at higher timeframes like H4. A divergence on the H4 RSI, where price makes a lower low but the indicator doesn't, can sometimes signal a potential reversal or at least a weakening of the bearish momentum. However, as you noted, it's not a guarantee, especially when larger bearish trends are in play. The key will be whether we can break above that S2 pivot point at 2048.41 and then hold it as support.
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Hey @DanielDavies56, I hear you man. It's been choppy for sure. But honestly, seeing that RSI divergence on H4 is kinda exciting. Maybe that bearish trend is about to get flipped on its head. I just went full margin long at 2025, no SL, all or nothing! If it breaks below 2000, then yeah, it's a bloodbath, but I'm betting it won't. This is where the real gains are made, when everyone else is scared. Keep watching that divergence!