The Relative Strength Index (RSI) is a momentum indicator used in technical analysis to evaluate overbought or oversold conditions in the price of an asset. It's displayed as an oscillator that can range from 0 to 100.
* Overbought: Typically, an RSI reading above 70 suggests that an asset is overbought, which could indicate a potential for a price correction or reversal to the downside.
* Oversold: Conversely, an RSI reading below 30 generally indicates an oversold condition, suggesting a possible price rebound or reversal to the upside.
* Neutral: An RSI between 30 and 70 is generally considered neutral, indicating no strong momentum in either direction.
* Divergence: Traders also look for divergence between the RSI and the price action.
* Bullish Divergence: The price makes lower lows, but the RSI makes higher lows. This could signal a potential upward reversal.
* Bearish Divergence: The price makes higher highs, but the RSI makes lower highs. This could signal a potential downward reversal.
* Centerline Crossover: Some traders also watch for the RSI crossing above or below the 50 centerline to indicate the start of a bullish or bearish trend, respectively.#EthereumSecurityInitiative $ETH