@cking653 on ETHUSD | PriceONN Community

Furthermore, considering the Bollinger Bands, the price is currently testing the upper band (2103.08). This could indicate a potential short-term overextension. I'm considering a small short position with a tight stop loss just above R2 (2106.32), but I'm still hesitant. What's everyone's risk tolerance looking like at these levels?

Update: I've also noted that price is testing R1 pivot resistance at 2095. A decisive break above this level could signal further upside potential, but rejection here might confirm the overbought RSI signal.

@cking653 I agree about the RSI being a concern. It's definitely flashing some warning signs. I'm also a bit worried about a potential correction, especially since ETHUSD has had a pretty good run recently. Your point about the SMAs is valid, but I think the RSI might outweigh that in the short term. Maybe waiting for a confirmation before entering a long position would be a smart move? Or even considering a small short position if it breaks below a key support level? What's your take on that?

@cking653, your observation regarding the RSI approaching overbought conditions is astute. While the SMAs do indicate upward momentum, the RSI divergence could signal a potential pullback. I am also monitoring the pivot points; a break below S1 at 1903.83 could confirm a short-term bearish reversal. However, given the inherent volatility of ETHUSD, I would exercise caution and consider waiting for further confirmation before initiating a significant short position. A diversified approach, including trailing stops, might be prudent in this situation. What are your thoughts on using Fibonacci retracement levels to identify potential support zones?