📉 ETH Approaches Overbought Zone: Strong Sell Signal Backed by Multi‑Indicator Confluence

The latest trading signal for ETH/USDT presents a high‑confidence SELL opportunity supported by multiple bearish indicators aligning at the same time. With a confidence score of 89/100, this setup is built on strong technical evidence, making it a compelling scenario for traders who specialize in counter‑trend or “sell‑the‑rally” strategies.

The signal is triggered near a price point of $1961.96, where Ethereum is currently showing signs of upward exhaustion. Although the short‑term trend remains upward, the broader market context tells a different story. ETH continues to trade below the EMA200, which clearly defines a long‑term downtrend. When price rallies upward into resistance or overbought territory during a larger bearish structure, such movements often present ideal short entries.

One of the strongest confirmations comes from momentum indicators: RSI at 71.77 places ETH firmly in the overbought zone, historically an area where reversals or corrective pullbacks commonly begin. This is further reinforced by the MACD turning bearish, indicating fading upward momentum. Ethereum is also trading close to the upper Bollinger Band, suggesting that price is stretched and more likely to revert downward.

The ADX value of 37.42 signals a strong directional trend. Within the context of the existing long‑term downtrend, this strengthens the case for a downward push once the current rally loses steam.

Risk management for this setup is clearly defined. The stop loss at $1977.53 limits risk to just 0.79%, keeping exposure controlled. The take‑profit structure is staggered across multiple levels TP1 at $1938.60, TP2 at $1915.25, and TP3 at $1884.11 with risk‑reward ratios ranging up to 5R. This tiered approach allows traders to secure gains gradually while staying aligned with market momentum.

Given the alignment of long‑term trend direction, overbought conditions, weakening momentum, and a high confidence score, this SELL setup offers a well‑supported and tactically advantageous opportunity.