The leading altcoin Ethereum is facing challenges as its market value decreases due to a bearish divergence, where the price is rising, but the RSI is not strengthening accordingly. This discrepancy is concerning for investors as it suggests a potential decline in the future.

Warning Signs from Technical Indicators

Despite Ethereum's recent price increase surpassing Bitcoin's performance, the lack of RSI support and a subsequent drop in price indicate vulnerabilities in its current market position. The weakening momentum shown by Ethereum's price trajectory and RSI readings raises concerns among investors.

Impact of Global Economic Tensions

Recent negative economic indicators from the United States, combined with fears of 'stagflation,' are contributing to the challenges faced by cryptocurrencies like Ethereum. Comments from JPMorgan CEO Jamie Dimon are adding to these concerns, indicating tough times ahead for risk assets. The diminishing expectations for interest rate cuts further complicate the situation for higher-risk investments.

Points to Consider

• Ethereum's price increase may be overvalued, as the RSI does not support it.
• Global economic uncertainties could have a negative impact on cryptocurrencies and risk assets.
• Investors should exercise caution in the market, considering potential volatility and regulatory changes.

In conclusion, Ethereum is grappling with technical weaknesses and adverse economic conditions, which could result in its first negative performance month this year. Investors and traders need to stay alert and adjust their strategies to navigate the increased risk and uncertainty in the market.