$ETH Overbought Warning! Will there be a short-term pullback or continue to rise?
From this ETH 4-hour chart, the current price is fluctuating around 2400, and in the short term, it's a bit of a dilemma. The 7-day and 30-day moving averages are almost overlapping, indicating that the market is hesitating about its direction.
The RSI indicator shows that the short-term has already surged to a high of 76, close to the overbought zone, but the medium to long-term RSI is still between 50-60, which isn't too hot. The MACD's DIF line is still underwater; although the green bars are shortening, the overall momentum is still weak.
Simply put: In the short term, it may still fluctuate around 2400. If it breaks through the previous high of 2424, it may spike to 2450, but if it falls below the support of 2391, it may pull back to around 2350.
Regarding the crypto market ETH, today we need to watch two things: first, the consolidation of ETH itself will make ETH's fluctuations smaller; second, there have been recent rumors in the market that the U.S. may ease cryptocurrency regulations.
If the news is confirmed, ETH may follow the broader market trend, but currently, the technical outlook for ETH isn't strong, and the possibility of a significant rise for ETH is low.
It's advised to keep an eye on the critical level of 2390; if it holds, keep holding, but if it breaks, be cautious of a pullback. The recent market trend has been quite lackluster, so avoid chasing highs and selling on lows recklessly.
Next, I will continue to layout the strategy. Instead of blindly exploring and failing to capture the best entry and exit points leading to losses, it’s better to follow me and those who agree directly come along.
