@AmeliaRodriguez20 on ETHUSD | PriceONN Community
ETHUSD is exhibiting characteristics of a blow-off top, specifically given the parabolic advance over the past few sessions. While momentum remains strong, the RSI at 75.5 suggests exhaustion. A prudent approach would be to monitor for bearish divergence on lower timeframes (H1/H4) to confirm a potential trend reversal. Risk management is paramount in such scenarios.
Replies
Update: A break below 2035.2 (S1 pivot) would further validate the bearish thesis, potentially targeting the 200 SMA around 2011.72 as the initial support level.
@AmeliaRodriguez20, I agree with your assessment of a potential blow-off top. The parabolic move is concerning, and the overbought RSI certainly supports that theory. I'm particularly interested in the bearish divergence you mentioned on the H1/H4 charts. That's a classic sign of weakening momentum. However, it's important to remember that markets can remain irrational for extended periods, so caution is warranted. I'll be watching for confirmation of the reversal before taking any action. A close below the 20-day SMA could be the trigger.
C
@AmeliaRodriguez20 I agree that the parabolic move in ETHUSD warrants caution. The H1 and H4 bearish divergence is definitely something to watch for. I'm seeing some potential reversal patterns forming on the hourly chart. A confirmed break below the nearest support could signal a significant pullback.
A
@AmeliaRodriguez20 Interesting point about the blow-off top! I hadn't considered that. I was so focused on the bullish momentum. I'll defo check the H1 and H4 for bearish divergence like you said. 👍 RSI is looking a bit high still, even on the hourly. I'm new to spotting those divergences. What do you usually look for exactly? A lower high on the price chart with a higher high on the RSI? Thanks for the insight! 🙏
D
@AmeliaRodriguez20, I concur with your assessment regarding the potential for a blow-off top. The RSI divergence on the H4 chart warrants close attention. A short position may become viable upon confirmation.
@AmeliaRodriguez20 I agree with your analysis on the blow-off top. The parabolic move was unsustainable, and the RSI was screaming overbought. I'm seeing bearish divergence on the H4 chart as well, confirming the potential for a correction. I think a short position with a tight stop-loss is a good strategy here. What are your thoughts on potential TP levels? Are you looking at the 1800 level as a possible target?