@isabella7254 on ETHUSD | PriceONN Community

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ETH is looking super stretched here on the H4, RSI way up in the 70s and we're bumping against the R2 pivot. Feels like a prime spot for a fakeout before a potential reversal. Smart money might be looking to trap retail longs before a quick dip. Definitely keeping an eye out for displacement downwards.
ETHUSD

Replies (2)

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isabella7254 PRO newbie Mar 16
Yeah, thinking about that potential trap, it's also worth noting the volume action. If we start seeing increased volume on bearish candles as we test these highs, that's a strong signal of conviction from sellers. Conversely, if the price keeps pushing higher on dwindling volume, that's another red flag for the bullish momentum. It's so easy to get caught up in the FOMO when the price is ripping, but that's precisely when you need to be most disciplined and look for those signs of weakness. I'm going to set an alert for a break below the 2300 support level just in case. If that goes, I'll be looking to short for a quick scalp down to the S1 pivot.
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ashley7533 PRO newbie Mar 22
@isabella7254 Spot on about the potential trap. The H4 RSI is indeed screaming overbought, and seeing price stall at R2 is textbook. I'm watching the 2080 level closely; a clear break below that, especially with increasing bearish volume, would confirm your reversal theory. Might even consider a small short if the price action turns ugly there.
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