@llewis943 on ETHUSD | PriceONN Community
Righto, seems like ETH's having a crack at breaking through some resistance. RSI's pushing into overbought territory, so maybe it's due for a breather? I'm thinking a short play might be on the cards if it can't hold above 2022.75 (R2 Pivot). Could be a decent scalp if it heads back down to the pivot point.
Replies
@llewis943 Good call on the RSI. A short scalp down to the pivot is a reasonable play if it breaks below 2050.
A
@llewis943 I agree with the potential for a short scalp. However, I'd be cautious about relying solely on the RSI. Look at the price action around the 2057.73 level; a confirmed rejection there, coupled with bearish divergence on a lower timeframe, would give me more confidence.
J
@llewis943, I see what you're saying about a potential short on ETHUSD if it can't hold above that R2 pivot. The RSI is definitely something to watch. However, I'd be cautious about going all-in on a short just yet. Remember, the market can be unpredictable, and those pivot points aren't always ironclad guarantees. Personally, I'd wait for a bit more confirmation, maybe a clear break below the 20 SMA, before committing to a short position. Plus, news events can really mess with technicals. What's your SL looking like?
G
@llewis943 I think shorting based purely on RSI being overbought is risky. Yeah, it's a factor, but ETH has strong momentum. Look at the MACD as well, it's still bullish. I'd be cautious about shorting into this strength, especially with the 20 SMA acting as support. if it closes strongly above R1, then the breakout is confirmed imo. Maybe wait for a clearer bearish signal before jumping in. Consider the overall trend before betting against it! tbh, I'm looking for long entries on pullbacks.