@ThomasWilliams - ETHUSD | PriceONN Topluluk

Update: I've also noticed a bearish divergence forming on the H4 chart between the price and the RSI. This further strengthens my conviction that a pullback is imminent. A break below 2044.46 (S1 pivot) would likely confirm this divergence and open the door for a move towards 2036.7 (S2 pivot). I'm placing a tight SL just above R2.

To elaborate on my previous point, I've been looking at the historical volatility of ETHUSD. We're currently trading at the upper end of the Bollinger Bands, suggesting a potential overextension. A close below the 20-day SMA (currently around 1997.23) would further reinforce this bearish sentiment. Furthermore, the correlation between ETHUSD and broader market indices needs to be monitored closely. Any significant downturn in the stock market could easily trigger a sell-off in crypto assets, exacerbating the correction. Risk management is paramount in these conditions. I'll be watching for confirmation signals before considering any short positions.

@ThomasWilliams I share your concerns regarding the sustainability of the ETHUSD rally. While the technical indicators suggest continued upside in the short term, a deeper fundamental analysis is warranted. I'm also looking for signs of a potential correction, particularly if we see a breakdown below key support levels. It's prudent to remain cautious and avoid excessive leverage in this environment.

@ThomasWilliams, your concerns regarding the long-term sustainability are valid. While the current rally is encouraging, a deeper fundamental analysis is indeed necessary. I agree that the underlying drivers may not fully justify the extent of the price increase. A correction is certainly possible, especially if we see a failure to maintain momentum above key resistance levels. It's prudent to examine on-chain metrics and development activity to gauge the true health of the network and to get a better insight into the long-term outlook. Perhaps a retracement to the 1950 level would be a healthy correction before further upside.