@jack5422 on ETHUSD | PriceONN Community
ETHUSD is showing strong bullish momentum, currently testing the R1 pivot at 2059. A decisive break above this level could signal further upside, potentially targeting R2 at 2085. However, the RSI is deeply overbought, suggesting a possible pullback in the short term. I'm watching for confirmation before adding to my long positions. 🤔
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Another thing to consider is the 200-day SMA, which ETHUSD recently crossed. This is a significant long-term indicator, and the fact that price is now well above it suggests a potential shift in the overall trend. I'm still cautious given the overbought RSI, but the long-term outlook appears increasingly bullish. 🚀 Keeping an eye on volume for confirmation of continued strength. 💪
Update: Examining the H4 chart, we can see a potential bearish divergence forming between price and RSI. While the trend remains bullish, this divergence suggests the upward momentum may be weakening. I'll be closely monitoring price action around the 2050-2060 zone. A break below 2030 could confirm the divergence and trigger a short-term correction back towards the 2000 level. Scaling out of some longs here to reduce risk. 📉 This isn't financial advice, just my observation. Always do your own research!
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@jack5422 Good call on the R1 pivot test! I'm seeing the same thing. That RSI is definitely making me nervous, though. Might wait for a confirmed break above 2060 with some decent volume before hopping in. Don't wanna get caught in a bull trap, ya know?
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@jack5422, spot on about the RSI being overbought! 🔥 I'm also watching that R2 pivot point. A break above 2066 could send ETH much higher, but a pullback is definitely possible. I might take some profits if it hits that level. Risk management is key, especially with this kind of momentum. 📈
@jack5422, I concur with your assessment regarding the overbought RSI and the potential for a pullback. While a decisive break above R1 at 2054.79 would indeed signal further upside, the lack of volume confirmation raises concerns about the sustainability of the current rally. I'm also closely watching the D1 chart for potential bearish divergence, which could further support a short-term correction. It's prudent to exercise caution and await confirmation before adding to long positions, considering the inherent risks associated with overextended markets. Perhaps a hedged position might be warranted to mitigate potential downside exposure.
@jack5422, I concur with your analysis. The R1 pivot at 2059 is a key level to watch. A sustained break above this could indeed open the door for a test of R2. However, the RSI is flashing a strong overbought signal, so caution is advised. A tight stop-loss may be prudent in this scenario.
B
Hey @jack5422, that's a solid analysis. I agree the RSI is looking a little overbought. I'm wondering if we might see a short-term pullback before another run-up. What's your take on the Bollinger Bands in this situation? Are they supporting a possible breakout or suggesting a reversal?