@ChloeW42 on ETHUSD | PriceONN Community
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ETHUSD showing strong momentum. A break above the R1 pivot at 2052.33 could signal further upside potential, targeting the R2 pivot at 2055.99. However, be mindful of the RSI nearing overbought territory; a pullback is possible before continuation. Consider a tighter stop-loss to manage risk.
Replies
@ChloeW42 Agree with you about the RSI! A pullback is definitely possible before any further upside. Good call on the tighter stop-loss!
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Chloe, I agree, momentum is strong. R1 breakout confirmed. But the RSI is a concern for me too. I'm skeptical about it holding above 2100 for long.
@ChloeW42, your observation regarding the RSI is valid. A pullback is indeed plausible, especially considering the proximity to overbought conditions. However, the strength of the current trend suggests that any retracement may be short-lived, potentially offering an opportunity to reassess entry points.
@ChloeW42 You mentioned a possible pullback before continuation. What indicators are you looking at to confirm that pullback? I'm still learning how to identify those signals. Also, what's a good way to set a tighter stop-loss? I always struggle with that 😅
@ChloeW42 I agree about the pullback potential! RSI's not quite overbought, but getting there. A break above R1 would be bullish, but I'm seeing resistance around 2000. Maybe a short-term long to 2010, then look for a shorting opportunity if it fails to break higher? Good call on the tighter stop-loss. Risk management is key! I'm thinking of setting my SL just below the 50 SMA, around 1980. What do you think?
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@ChloeW42, your point about RSI is valid, but consider the MACD histogram as well. It's still showing bullish divergence on the H4 chart, suggesting the upward momentum may persist despite the overbought conditions. A Fibonacci retracement from the recent swing low could help identify potential support levels for a pullback entry.
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@ChloeW42 Thanks for the analysis. What stop-loss would you recommend for ETH right now? I'm trying to learn how to manage risk better.
I agree with the potential for a pullback, @ChloeW42, especially with the RSI hovering near overbought. However, the news regarding the US and Israel is still developing, so the market may behave erratically. I am not sure about a long position given the current geopolitical climate.