Ethereum price has formed a bullish divergence at the $2,900 support level, suggesting a possible move towards $3,425 if volume supports this move.
summary
- A bullish divergence is formed when the RSI rises and the price hits a low.
- $2,900 acts as the major higher timeframe support.
- If the volume confirms the setup, a break towards $3,425 is likely.
Ethereum (ETH) price action is approaching a decisive technical moment after successfully defending the $2,900 area, the high timeframe support that has historically attracted significant buying pressure.
The newly formed bullish divergence between price and RSI strengthens the case for a potential upward rotation. Additionally, Tom Lee’s recent claim that Ethereum is entering a “supercycle” has sparked further debate, further increasing market speculation about the next big move.
Important technical points of Ethereum price
- Bullish Divergence at $2,900: RSI forms higher lows and price records lower lows, indicating early bullish momentum.
- Our immediate goal is $3,425: Resistance at $3,425 sits at the top of the range and is the next major upside target.
- Volume confirmation required: A strong impulse candlestick and a bullish volume profile are required to validate a divergence.
You may also like: Pi Network price forms a double-dip: Is a bailout rebound next?
ETHUSDT (4H) chart, source: TradingView
Ethereum’s current structure shows that the price has recently retested the $2,900 level, a high time frame support zone that has held many times during past correction phases.
This region is currently producing a notable bullish divergence. While the price has recorded lower lows, the RSI has formed higher lows, indicating a change in internal momentum below the surface.
This development is important because a break at a major support level often precedes an initial reversal attempt.
You may also like: Bitcoin enters death cross as market tests key levels
So far, this divergence has caused a small pullback in the lower timeframes, showing the first signs of reactive demand entering the market. However, the divergence has not been fully confirmed. To activate, Ethereum needs to print impulsive bullish candlesticks supported by a clear increase in purchase volume. A bullish engulfing move in the volume profile would be the strongest signal that momentum is definitely shifting in the buyers' favor.
If we get this confirmation, the next upside target is in the $3,425 area. This level represents the upper bound of the current trading range and is consistent with structural resistance and liquidity pools. As long as Ethereum defends $2,900 and maintains the bullish divergence formation, a rotation towards the top of this range is technically possible.
Although upside pressure is starting to build, Ethereum must continue to hold significant support and show continuity. If a divergence cannot be confirmed, there is a risk of a rupture, with support targets potentially being lowered again.
What to expect from future price trends
If the bullish divergence is confirmed, Ethereum could head toward the $3,425 resistance level in the near term. However, once the price breaks below $2,900, the setup will be invalidated and momentum will revert to the bears and the downtrend will continue.
read more: KuCoin enters Australia with new headquarters and local leadership in Sydney
