- Ethereum shows signs of a bullish reversal as RSI divergence suggests weakening bearish momentum and rising buyer interest.
- Price support near $1,750 and RSI nearing 40 strengthen the case for a bullish move toward the $4,000 level soon.
- Despite prolonged selling, technical indicators point to an imminent upside as Ethereum eyes a rally driven by bullish divergence.
Ethereum ($ETH) is likely to show a bullish reversal, according to analyst Javon Marks, as its daily chart confirms a Regular Bullish Divergence. Even when prices continue to decline, this pattern suggests that the bearish momentum is weakening. To this end, bulls may be gearing up for a charge, While this divergence indicates that Ethereum might soon target $4,000.
Bullish Divergence Explained
A Regular Bullish Divergence is created when the price of an asset is creating lower lows and an oscillator, such as the Relative Strength Index (RSI), is making higher highs. In the case of Ethereum, the price has created lower lows since August 2023 until April 2025. The RSI, however, has been rising, indicating a divergence between the two.
This divergence typically suggests a possible shift in trend direction. Thus, even though the market has been confronted with excessive selling pressure, the momentum is beginning to reverse. The rejection at the trendline is complemented by a turning upside in the RSI. It shows that there is relief in selling pressure.
Technical Indicators Support Potential Reversal
Since November 2024 until April 2025, Ethereum’s price action has been consistently decreasing, continuing its bearish trend. Nonetheless, the trendline is held at $1,750, where the recent price action indicates support. Furthermore, the RSI value is nearing the $40, an indicator of the strengthening bullish momentum.
Ethereum hasn’t been able to rise above the $4,100 mark since early 2024, but the most recent RSI readings point to a change. There could be a brief rally as a result of this bullish divergence. Higher volatility may result from the convergence of price support and stronger momentum, which would move Ethereum closer to the $4,000 objective.
