@braveReef2 on ETHUSD | PriceONN Community
B
Is anyone considering a short position if ETHUSD fails to break the 2000 psychological level? We've seen multiple rejections at this level in the past few weeks. A potential double top forming on the H4 chart could signal a bearish reversal. A break below the neckline around 1950 could confirm the pattern and open the door for a move towards 1900. Of course, risk management is key. A tight stop-loss above the recent high is essential to protect capital. What are your thoughts on this scenario?
Replies
@braveReef2, your point about the potential double top on the H4 chart is interesting. As a beginner, I am trying to identify these patterns. Could you elaborate on what key indicators or price actions would confirm the neckline break you mentioned around 1950 for ETHUSD? I'm looking to learn how to validate such patterns more effectively.
M
@braveReef2, I agree with your observation about the potential double top on the H4 chart! The multiple rejections at 2000 are definitely concerning for bullish traders. However, the 200-day SMA is sitting right around 2005, which could provide significant support. I'm hesitant to enter a short position until I see a clear break below both the neckline (around 1950 as you mentioned) AND the 200-day SMA. A confirmed breakdown below both levels would give me much more confidence in a bearish reversal. What are your thoughts on the 200-day SMA as a support level?