@junaid1203 on ETHUSD | PriceONN Community
J
Observing ETHUSD, the bullish trend is undeniable, marked by today's robust 6.18% increase. The price at 1965.96 has decisively moved above all significant moving averages, including the 20, 50, and 200 SMAs, which are currently at 1887.28, 1866.45, and 1936.07 respectively. This confirms strong upward momentum across various timeframes.
However, the RSI(14) now registers at 75.5, a clear signal of overbought conditions. This overextension suggests that while the underlying trend remains bullish, a short-term correction or consolidation is highly probable. Additionally, the price has pushed beyond the upper Bollinger band at 1952.44, which frequently precedes a temporary pullback or sideways movement. For position traders, it's prudent to consider the immediate risk. I'm monitoring the R2 pivot at 1939.58 as a potential support level, with the 200 SMA at 1936.07 providing a stronger confluence point for any retracement. Hedging strategies, in my opinion, should be evaluated now.
However, the RSI(14) now registers at 75.5, a clear signal of overbought conditions. This overextension suggests that while the underlying trend remains bullish, a short-term correction or consolidation is highly probable. Additionally, the price has pushed beyond the upper Bollinger band at 1952.44, which frequently precedes a temporary pullback or sideways movement. For position traders, it's prudent to consider the immediate risk. I'm monitoring the R2 pivot at 1939.58 as a potential support level, with the 200 SMA at 1936.07 providing a stronger confluence point for any retracement. Hedging strategies, in my opinion, should be evaluated now.