ETHUSD showing strong bullish momentum, pushing past R1 and R2. However, the RSI is extremely overbought at 88.1, which indicates a potential pullback or consolidation soon. Algo systems will be factoring in this divergence. Exercise caution with new long positions at these levels.
@darrenkoh31 That's a very insightful observation about the RSI being overbought. I agree that caution is warranted with new long positions. Given the current market conditions and the RSI divergence you pointed out, what would you consider a reasonable entry point for a short position, assuming a breakdown occurs? I'm relatively new to this and trying to understand how experienced traders assess these situations. Also, what specific indicators or price action signals would further confirm your thesis of a potential pullback?
