According to the 100eyes crypto scanner accountthere is a bearish divergence on the Ethereum hourly chart.
Bearish divergence occurs when a certain cryptocurrency records higher highs on the price chart while simultaneously recording lower lows on the Relative Strength Index (RSI) momentum oscillator.
The RSI, which oscillates between 0 and 100, indicates whether a given asset is overbought or oversold.
If the price moves in opposite directions of the oscillator, traders can spot a divergence, which comes in two forms (bullish and bearish). In this particular case, traders can spot a bearish divergence since the RSI is falling despite Ethereum seeing substantial gains over the weekend.
A bearish divergence indicates that there is buyer exhaustion, which means that it would be difficult to maintain the current bullish momentum.
As reported by U.Today, the price of Ethereum saw a substantial rise on Sunday, increasing by more than 6%. The cryptocurrency has managed to significantly outperform Bitcoin over the past 24 hours.
However, Ethereum is once again down around 4% as the market digests terrible Bitcoin ETF outflows and further macroeconomic uncertainty. Concerns about “stagflation” are at the forefront following recent economic data. JPMorgan boss Jamie Dimon recently warned that this could be the case, with inflation remaining high and economic growth weak. The famous banker said the current state of the economy reminds him of the 1970s. The odds of multiple rate cuts have fallen, which is not a favorable outcome for risky assets.
So far, it looks like Ethereum will mark its first monthly close in the red this year after seven consecutive green candles.