ETH/USD - Strong RSI Buy Signal and possible Fibonacci Bounce

ETH/USD has significantly dropped below MA(50) approaching a support line that has already proven sufficient for two previous dips. A bounce from the support line coincides with the Fibonacci 0.618 level that is broadly accepted as a key retracement level. The previous dips provided a strong buy signal before continuing the bull trend: The oversold cyclic smoothed RSI.

The cyclic smoothed RSI of the current dip is also highly oversold and we can expect a reversal at this point.

As we are notably low on Volume, we have a low overall participation especially on the buyer side. Thus, it is highly recommended to wait for a surge of Buy Volume and the next candles to close clearly above the dip for sufficient confirmation of the reversal before entering a long position.

BASIC, PLAIN and SIMPLE.

Liked this technical analysis? Follow me for more free technical analysis and high-quality content.

Telegram: t.me/hodlgang_taproom
Twitter: twitter.com/wesker_crypto
Steemit: steemit.com/@wesker