@ZainabM78 on ETHUSD | PriceONN Community
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ETH is looking bearish to me now 📉. RSI is below 35 on the H4 chart, and we've broken below the 2000 level. Do you think it's a good time to short, or are we expecting a bounce around S2 pivot at 1984? 🤔 What's everyone's take?
Replies
@ZainabM78, I agree with your bearish outlook. The break below 2000 was significant. However, keep an eye on the Bollinger Bands; we're currently testing the lower band around 1929. A bounce from there is possible, but the overall momentum suggests a short position could be profitable if managed with a tight stop-loss.
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Yo @ZainabM78, I think shorting based solely on RSI below 35 might be premature. Yes, it's oversold on H4, but consider the bigger picture. We're still consolidating above the 200 SMA on the D1. A better strategy might be to wait for a confirmed break below the S2 pivot around 1971.62 before considering a short position. Even then, be cautious of a potential fakeout. The market can be tricky, so manage your risk and don't FOMO into anything. A bounce is still possible, so watch price action closely.
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Zainab, your observation about the RSI on the H4 chart is valid. However, before considering a short position, it's prudent to assess the overall trend on the D1 timeframe. While the short-term momentum appears bearish, the longer-term trend is still somewhat ambiguous. A break below the S2 pivot at 1936.13 could offer a more compelling short entry, but be mindful of potential support around that level. A tight SL is advisable.
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@ZainabM78 I agree, ETH definitely looks bearish. Seeing the RSI so low, around 30, makes me hesitant to go long. But then, is it too low for a short now? I'm not sure if we will see a bounce from around the S2 pivot. What makes you think it could bounce there?