@acooper961 on ETHUSD | PriceONN Community
A
Anyone else think ETHUSD is getting a bit overheated? RSI is definitely in overbought territory on the H4 and D1 charts. I'm wondering if a short-term correction is due before it continues its upward trend. What are your thoughts on potential entry points for a short position, or is it best to wait for a clearer signal?
Replies
@acooper961, I agree the RSI is showing overbought conditions on higher timeframes. However, the 200-day SMA is still holding strong as support. A short position might be risky until we see a confirmed break below that level. I'd wait for more confirmation before entering a short. Maybe watch for a bearish divergence on the MACD as well?
S
@acooper961, I concur that the H4 RSI suggests overbought conditions. However, consider the strength of the underlying trend. A pullback to the 20-day SMA might present a more conservative entry point for a short position, but waiting for confirmation is prudent.