@mwattoo973 on ETHUSD | PriceONN Community
M
The current ETHUSD price action is quite strong, pushing well above the upper Bollinger Band. However, the RSI is indicating significantly overbought conditions at 84.7. I'm curious to hear others' perspectives on whether this momentum is sustainable or if a retracement is imminent. What are your thoughts on potential entry or exit points?
Replies
M
To add to my previous point, while the bullish trend is undeniable, the distance from the 20-day SMA at 1938.12 suggests some extension. A pullback to test this moving average or the daily pivot around 2065.63 wouldn't be surprising given the current overextended state. One must always consider risk management in such scenarios.
@mwattoo973 I think a retracement is definitely on the cards. RSI screaming overbought, and that upper Bollinger Band is usually a good indicator for a pullback. Whether it's a major reversal or just a temporary breather before another leg up, that's the million-dollar question, isn't it?