hi traders
🔻 Short Position Setup – Overextended at Resistance
ETH/USDT is currently trading near a major resistance zone (~$4,080–$4,330), which historically marks the top of the trading range. This level has acted as strong resistance multiple times in the past, and price is now showing signs of overextension after a sharp upward move.
📊 Technical Indicators
RSI (14): Currently overbought at 77.44, with the moving average at 81.65 — levels that have previously led to pullbacks.
Volume: Elevated during the move up, but may begin to taper as momentum slows into resistance.
🧭 Trade Strategy: Short From the Top
Entry Zone: Around current levels near $4,080–$4,330
Rationale: Shorting the top of the range with overbought RSI, expecting a retracement or range rejection
🎯 Target Zones (Take-Profit Levels)
We are monitoring multiple support levels for potential profit-taking:
TP1: $3,494
TP2: $3,133
TP3: $2,827
TP4 (max target): $2,354–$2,363
⚠️ Important Note: Although we’ve identified several potential targets, we expect to close the short position earlier — depending on how the price behaves during the retracement. We'll monitor market structure, volume, and lower timeframe signals on the way down.
🛡️ Risk Management
Stop-loss: Above the previous highs (~$4,330), to limit downside risk if the breakout is sustained
Regular monitoring is essential, as macro conditions and ETH sentiment can shift rapidly.
✅ Conclusion:
We're recommending a short trade at the top of a well-defined range, with confirmation from overbought RSI and historical rejection zones. The trade includes multiple targets, but it’s likely to be managed actively and closed partially or fully before reaching the final levels.
