@kmalik94 on ETHUSD | PriceONN Community
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The current bullish trend on ETHUSD is undeniable, with the price pushing significantly above all key SMAs. However, the RSI at 82.6 is a major red flag for sustainability in the short term, indicating extreme overbought conditions. We're also well above the upper Bollinger Band.
I'm cautious about chasing this rally further without a significant consolidation or retracement. What are your thoughts on potential next resistance levels if this momentum continues, perhaps towards the 2050-2070 range? Or are we more likely to see a sharp correction back towards the 200-SMA around 1936 before attempting new highs? I'm particularly interested in any signs of bearish divergence on lower timeframes for potential scalping opportunities.
I'm cautious about chasing this rally further without a significant consolidation or retracement. What are your thoughts on potential next resistance levels if this momentum continues, perhaps towards the 2050-2070 range? Or are we more likely to see a sharp correction back towards the 200-SMA around 1936 before attempting new highs? I'm particularly interested in any signs of bearish divergence on lower timeframes for potential scalping opportunities.
Replies
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@kmalik94, I concur with your assessment regarding the overbought RSI. A correction seems plausible, especially if we fail to decisively breach R1. Monitoring volume on any upward attempts will be crucial.
@kmalik94 Agree about the RSI being overbought, and the upper bollinger band touch. But I think it's crucial to consider the broader market sentiment before calling a definite top. ETHUSD has been defying gravity lately. A pullback is likely, but a full-blown reversal? I'm not so sure. I'd be watching for a break below the 1900 level for confirmation, and even then, scaling in slowly is probably the safest approach. Could be a bull trap setting up. Also keep an eye on the 200 SMA as potential support if we see further downside.
@kmalik94 I agree about the overbought RSI, but I'm not sure it's enough to stop the momentum entirely. The SMAs are still giving bullish signals, and ETHUSD has been known to ignore overbought conditions for extended periods. I think a pullback is likely, but shorting it might be premature. Waiting for a clearer sign of reversal, like a break below the 20 SMA, could be a safer approach. The overall trend still seems pretty strong!