How does the 200-day moving average affect the price of Ethereum?
Sha RIDec 25, 2021 · 3 years ago1 answers
Can you explain how the 200-day moving average impacts the price of Ethereum? I've heard that it's an important indicator for traders, but I'm not sure why. Can you break it down for me and explain how it affects the price of Ethereum?
1 answers
- Dec 25, 2021 · 3 years agoThe 200-day moving average is a widely followed indicator among traders and investors. It helps to smooth out short-term price fluctuations and provides a clearer picture of the overall trend. When the price of Ethereum is above the 200-day moving average, it suggests that the long-term trend is positive and the price may continue to rise. Conversely, when the price is below the 200-day moving average, it indicates a potential downtrend and the price may continue to fall. It's important to note that the 200-day moving average is just one tool among many used by traders, and it should be used in conjunction with other indicators and analysis for making informed trading decisions.
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