Based on the 100eyes Crypto Scanner’s analysis of Ethereum’s hourly chart, there’s a bearish divergence between price and the Relative Strength Index (RSI). This happens when Ethereum records higher highs in price but lower lows in RSI readings.
Based on the information from the 100eyes Crypto Scanner, the hourly Ethereum chart exhibits a bearish divergence.
When a cryptocurrency’s price reaches new highs on the chart, but itsRelative Strength Index (RSI) shows lower lows during the same timeframe, this is referred to as bearish divergence. This situation indicates that the RSI may be signaling a weaker trend than what is suggested by the price alone, potentially foreshadowing a potential reversal or continuation of a downtrend.
As an analyst, I would explain that the Relative Strength Index (RSI), which ranges from 0 to 100, helps determine if a particular asset has been bought too heavily (overbought) or if it’s being sold excessively (oversold).
If the price trend contradicts the signal given by the oscillator, traders can identify divergence, which manifests in two variations: bullish and bearish. In this scenario, traders are able to detect bearish divergence because while Ethereum has experienced significant increases during the weekend, the Relative Strength Index (RSI) is decreasing instead.
As a crypto investor, I’ve noticed that when bearish divergence occurs, it signals that the buying energy is waning. This implies that keeping up the current bullish trend might be difficult.
Based on U.Today’s report, I observed an impressive surge in Ethereum’s price, with an approximately 6% increase on Sunday. Notably, Ethereum outperformed Bitcoin significantly during this period.
As a crypto investor, I’ve noticed Ethereum taking a hit once more, approximately 4% in value. The market is grappling with the aftermath of significant Bitcoin ETF outflows and renewed economic uncertainty. Fears of “stagflation” are on everyone’s minds following recent economic data. JPMorgan CEO Jamie Dimon has added fuel to the fire, warning that we might be in for a stagflationary period. Inflation remains high while economic growth is sluggish, which doesn’t bode well for risk assets like Ethereum. The likelihood of multiple interest rate cuts has taken a nosedive, and this isn’t good news for crypto investments.
Thus far in 2023, Ethereum seems set to record its initial monthly closure with a loss following seven successive green months.
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2024-04-29 11:44