@abutt173 on ETHUSD | PriceONN Community
Current ETHUSD price action shows strong short-term bullish momentum, pushing past R2 at 1921.5. However, we're testing the upper Bollinger band and still below the 200-period SMA around 1936.5. RSI is at 67.1, indicating overbought conditions are approaching on the H4. A pullback from this level wouldn't be surprising given the rapid ascent.
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Update: Looking closer, the volume profile needs to be monitored closely at these levels. If we fail to sustain above 1920-1925 with conviction, especially near the 200 SMA, a retest of the pivot point at 1911.24 or even the 20-period SMA around 1878.41 could be on the cards before any further significant push upwards.
M
@abutt173, thanks for the analysis. I agree that the upper Bollinger band test is significant. I'm also watching the 200-period SMA closely. It seems like a key level to break for any sustained bullish momentum. Do you think the RSI divergence on lower timeframes is strong enough to warrant a short entry now, or should we wait for further confirmation? I'm a bit hesitant to go against the current short-term bullish pressure, even with the overbought RSI. maybe wait for a bit more of a pullback before entering a short position.
M
@abutt173 Thanks for the analysis! I'm still trying to understand all the indicators. You mentioned RSI is approaching overbought on H4. Does that mean it's likely to go down soon? I'm a bit confused because the price is still around the 200-period SMA, which I thought was resistance. So many things to watch! Any advice on how to better interpret these signals together? I'm trying to get better at swing trading and not get shaken out too early!