One great trader I once worked used to tell me, nobody what kind of up move you are expecting there will always be a dip.
Current price action in ETHUSD is currently proving him right. ETH hit resistance from back in August near 225 and has made a move back toward the 200-day moving average near 208. In the most optimistic scenario, ETH would hang out around the 200-DMA while the "overbought condition" gets relieved. In this case, the overbought condition would be relieved if a long term RSI, like the 14-day RSI, came back to a more neutral territory near 50. It seems other big rallies in ETH have unfolded after the 14-day RSI moves back to near 50.
As an indicator, RSI ranges between 0 and 100. A 14-day RSI is useful if you have a longer-term trading horizon.
Bottom Line: In our view, the ETHUSD dip is related to what may be relentless tax-loss selling in the altcoin universe. We do believe ETH can do well in the fourth quarter regardless of what happens to alts. It's a bold thought. We believe ETH can follow BTC and LTC higher rather than tracking alts lower.
Current price action in ETHUSD is currently proving him right. ETH hit resistance from back in August near 225 and has made a move back toward the 200-day moving average near 208. In the most optimistic scenario, ETH would hang out around the 200-DMA while the "overbought condition" gets relieved. In this case, the overbought condition would be relieved if a long term RSI, like the 14-day RSI, came back to a more neutral territory near 50. It seems other big rallies in ETH have unfolded after the 14-day RSI moves back to near 50.
As an indicator, RSI ranges between 0 and 100. A 14-day RSI is useful if you have a longer-term trading horizon.
Bottom Line: In our view, the ETHUSD dip is related to what may be relentless tax-loss selling in the altcoin universe. We do believe ETH can do well in the fourth quarter regardless of what happens to alts. It's a bold thought. We believe ETH can follow BTC and LTC higher rather than tracking alts lower.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.