Ethereum RSI Indicator Shows First Bullish Signal Since Market Sell-Off, Aiming at Reversal from $1,090
The sell-off on the cryptocurrency market caused billions worth of losses for retail and institutional investors who held Bitcoin and other cryptocurrencies. But Ethereum's performance was arguably one of the worst cases all over the market, considering its capitalization and liquidity.
Despite the catastrophic technicals and macros of Ethereum, we are seeing the first sign of a potential short-term reversal, the Relative Strength Index suggests. The price indicator divergence is quite often used to determine short-term reversal points at the end of each rally.
In the current Ethereum case, the cryptocurrency's price is showing quite a strong divergence with the indicator on a four-hour timeframe. The daily timeframe, unfortunately, has no signals that may suggest that the mid-term reversal is around.
The divergence with the indicator had been forming since June 13.
Macro data remains alarming
The main driver of the current downward rally is the negative macro data that includes massive volumes of liquidations on spot, derivatives and lending markets. With most investors being liquidated, no new funds are hitting the market, leaving it with nothing but strong selling pressure.
The last two weeks were the hardest for Ethereum in a long time, including massive liquidation volume on the lending and borrowing market, with Celsius facing risks of liquidation, 3AC losing investors' funds and Beacon Chain experiencing a block reorganization that questions the security of Ethereum 2.0. At press time, Ethereum is trading at $1,033.
Ethereum is not the only one experiencing tough times as the whole DeFi sector is bleeding as no new funds are coming in, and the biggest players are leaving the market for good.
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