Why I think it’s time to look at a SHORT on $ETHFI? 🔴

I’ve been following $ETHFI since this move started, and for me it appeared the confirmation I was waiting for to look for a Short

ETHFI reached 0.4508 after a very strong pump, and from there it lost strength

What happened next?

It lost the 0.440 zone, accelerated the drop, and went as low as 0.4337

Now we’re seeing a bounce, but for the moment it’s still below the moving-average block, which is roughly between 0.4386–0.4408

Yes, I know that looking at 1m to make a trading decision isn’t ideal 😅 and I also don’t recommend it… but in this case it helps me see more closely how this bounce is behaving

And there’s something I like:

On higher timeframes, ETHFI was VERY overbought

On the 1H timeframe we got RSI(6) close to 88 and RSI(12) close to 83. On 4H, RSI(6) almost reached 90

By itself, that does NOT mean you should open a Short. An overbought asset can keep running up a lot

The difference is that now we already had momentum loss + rejection from 0.4508 + a break of 0.440

Currently, the very short-term StochRSI is high again, and the MACD is trying to recover, so I’d let this little bounce play out…

but personally I still see a continuation downward as more likely

My map for this trade:

Critical zone: 0.440–0.441

If it reaches there again and gets rejected, for me the Short gets a lot more strength

SL: 0.445–0.451

TP1: 0.4335
TP2: 0.427–0.425
TP3: 0.420
TP4: 0.410–0.412

Watch out for 0.4337 because it already reacted there, and therefore we know there are buyers defending that area

Where would I stop liking the Short?

If ETHFI recovers 0.441–0.444 and manages to stay above it, for me the bearish short-term thesis starts to lose strength

Setup score: 8.5/10

That’s simply my personal score, taking into account RSI, structure, momentum, volume, and risk/reward

And obviously, this is my analysis, not financial advice
#ETHFI #Trading