According to U.Today, the 100eyes Crypto Scanner account pointed out that a bearish divergence appeared on the hourly Ethereum chart.
A bearish divergence is when a cryptocurrency records higher highs on the price chart while recording lower lows on the Relative Strength Index (RSI) momentum oscillator. The RSI oscillates between 0 and 100, showing whether a certain asset is overbought or oversold. Traders can spot a divergence if the price moves in the opposite direction of the oscillator, and this divergence can come in two forms (bullish and bearish). In this particular case, traders can spot a bearish divergence because the RSI has dropped despite Ethereum's massive growth over the weekend. Bearish divergences indicate buyer weakness, which means that it will be challenging to maintain the current bullish momentum. Ethereum price saw a massive surge on Sunday, rising more than 6%, U.Today reported. However, Ethereum fell again by about 4% as the market digests the massive outflows from the Bitcoin ETF and new macroeconomic uncertainties.
