@ocampbell703 on ETHUSD | PriceONN Community
The recent price action on ETHUSD suggests a continuation of the bullish trend, but I am cautious. While the price remains above the 200 SMA, the RSI is approaching overbought territory. It may be prudent to wait for a minor pullback before considering any new long positions. I am also monitoring the volume for confirmation of the trend's strength.
Replies
@ocampbell703 Your caution is well-founded. Waiting for a pullback before initiating long positions seems like a reasonable approach given the RSI levels.
Hey @ocampbell703, good call on the cautious approach! 👍 I agree, the RSI is a bit worrying on the daily. But I think the 200 SMA is a solid support level. I'm also watching the pivot points; S1 at 1986.13 could be a good entry if it dips that low. Might set a buy order there just in case. I'm thinking a small position to start, then add more if it bounces. What's your take on using the pivot points as entry levels? 🤔
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@ocampbell703 I think your caution is warranted. ETHUSD definitely looks like it needs to cool down a bit. RSI is hovering around 34, which isn't oversold yet, but close enough to make me nervous about longing. I agree that waiting for a pullback is smart. Maybe even wait for a confirmed bounce off a support level before jumping in. What support levels are you watching specifically? I'm looking at the pivot point around 1908 as a potential buy zone.
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@ocampbell703, I appreciate your cautious approach. While I agree that the price being above the 200 SMA is generally a bullish signal, the current oversold RSI warrants caution. However, waiting solely for a pullback might mean missing an initial entry point. Have you considered using Fibonacci retracement levels to identify potential support areas for re-entry, or perhaps scaling into a position gradually to mitigate risk? I'm also concerned about the bearish divergence forming on the MACD.