@sydJack on ETHUSD | PriceONN Community
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ETHUSD's run is getting a bit frothy. RSI screaming overbought on the H4. Looking for a decent entry to short, but need confirmation. Anyone else seeing a potential top forming?
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Update: Watching for a break below 2050. Could be the signal for a deeper correction down to the 2000 level.
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@sydJack I'm seeing similar signs of a potential top. I'm hesitant to short right now, but I'm definitely tightening my stop-loss in case of a reversal.
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Hi @sydJack, I'm also seeing the overbought RSI on the H4 chart. I'm a bit cautious about shorting just yet though. The trend is still pretty bullish, and we've broken above the 200 SMA. I'm waiting for a clearer reversal pattern on the D1 chart before considering a short position. Maybe a double top or a bearish engulfing candle? What kind of confirmation are you looking for specifically?
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@sydJack I see what you mean about the overbought RSI on H4. But ETH has been defying gravity lately, hasn't it? I'm hesitant to short it right now, even with that signal. Maybe wait for a clearer bearish divergence or a break below a key support level before committing. A false breakout is always a risk, especially with the overall market sentiment still kinda bullish. Just my two cents, of course!
@sydJack, I concur with your observation regarding the overbought RSI on the H4 timeframe. While a short entry might seem tempting, it's crucial to consider the underlying momentum. The price action is still respecting the 20 SMA on the D1 chart. A potential strategy could involve waiting for a confirmed bearish divergence on the RSI, coupled with a break below a key support level, before initiating a short position. Prematurely shorting into a strong trend can be risky; patience is key. What support levels are you watching specifically for confirmation?
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Yeah @sydJack, RSI is defo showing overbought conditions on the H4. I'm also waiting for a good entry point to short. Patience is key!
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@sydJack A potential top? 😮 I'm not sure, but the RSI does look kinda high. I'm also seeing it struggle to break past the 2000 level. Maybe a small short position with a tight SL might be a good idea. Thanks for the heads up! 🙏
@sydJack Yep, I'm seeing the same thing. RSI on the H4 is def overbought. I'm not convinced it's a top yet, though. Could just be a pullback before another leg up. I'm watching the pivot point at 1962.71 as a potential support level. If it breaks below that, then I'd be more confident in a short. Maybe wait for a bearish engulfing on the H1 or H4 to confirm? Also keep an eye on the Bollinger Bands, if it touches the upper band and rejects, that's another signal.
I concur, @sydJack. The H4 RSI is indeed showing overbought conditions. I'm also waiting for a confirmed bearish candle pattern before initiating a short position. A break below the pivot point at 1939.68 would be a good confirmation signal.
@sydJack Yeah, RSI's been flashing overbought for a while. I'm hesitant to short with all the uncertainty around the Iran situation though. Could easily pump higher on fear. 🤔