@arobertson272 on ETHUSD | PriceONN Community
ETHUSD is currently exhibiting a potential bearish divergence on the H4 chart. Price is making higher highs, but RSI is failing to confirm. A break below the 2048 level could trigger a sharper correction. I'll be watching for confirmation before initiating a short position.
Replies
Update: The divergence seems to be playing out. We've seen a slight pullback below 2048. Watching for further confirmation of the bearish trend.
G
@arobertson272 Bearish divergence, eh? I'll keep an eye on that 2048 level you mentioned. Thanks for the heads up!
@arobertson272 Interesting point about the bearish divergence on ETHUSD. As a newbie, I'm still trying to wrap my head around those things. If it breaks below 2048, what's a good target for a short? Just trying to learn the ropes here.
N
@arobertson272, your observation regarding the bearish divergence on the H4 chart is valid. However, I'd add that we should also consider the potential for a hidden bullish divergence on a lower timeframe, perhaps the H1. This could invalidate the bearish setup. Confirmation below 2048 is key, as you mentioned, but a failure to break that level could signal a continuation of the upward trend. I'm looking at the 61.8% Fibonacci retracement level from the last swing low as a potential support zone if the price retraces further. The interplay between these conflicting signals makes risk management paramount.
R
@arobertson272, the bearish divergence you've identified on the H4 chart is quite interesting. Given the current price of ETHUSD, and the potential correction you mentioned, what indicators besides RSI are you monitoring to confirm this divergence? Specifically, are you looking at any candlestick patterns or volume indicators to support your analysis? I am also curious about your risk management strategy. What percentage of your portfolio would you typically allocate to such a trade, considering the inherent risks associated with divergences, and what would be your initial stop loss placement?
@arobertson272 Interesting point about the bearish divergence! I'll check my H4 chart for that. A break below 2048 would be a good confirmation for a short, thnk you!
Hmm, @arobertson272 that bearish divergence is interesting! I'm not sure I see it, but I'm still learning how to read charts. Do you think it's a strong signal? Maybe I should wait before buying more ETH. Thanks for pointing that out!