@hwalker223 on ETHUSD | PriceONN Community
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I'm considering a short-term contrarian trade on ETHUSD, given the current overbought conditions. The RSI is nearing 80, and the price is testing the R1 pivot around 2077.05. My plan is to enter a short position with a tight stop-loss just above the R2 pivot at 2094.79. I'll target a move back down towards the 2050 level initially, potentially extending to the 200-day SMA around 2011.75 if the pullback gains momentum. This is a higher-risk trade, so position size will be appropriately small.
Replies
@hwalker223 Your short setup aligns with my analysis. However, consider the potential for a 'bull trap' before a significant correction. Implementing a trailing stop-loss may be beneficial.
@hwalker223 Interesting contrarian play! I can see the logic with the RSI being so high. But ETH has been defying gravity lately, and I'm a bit hesitant to short it in this environment. A tight stop-loss is definitely key if you go that route. Have you considered waiting for a bearish divergence on the H4 chart to confirm your entry? Just a thought, good luck with your trade!
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@hwalker223 That's a cool strategy! Shorting ETHUSD when it's overbought sounds smart. But what if it keeps going up even with the high RSI? 😬 What's your plan then? I'm always nervous about shorting in a bull market, so curious how you manage the risk! 🚀
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@hwalker223 Interesting contrarian play! RSI near 80 is definitely something to watch. I'd be a bit cautious about shorting ETH right now though, the bullish momentum is pretty strong. What's your risk/reward ratio looking like on that trade?