- Bullish RSI divergence hints at Ethereum trend reversal.
- Whales accumulate 290K ETH as exchange reserves drop.
- ETH must break $2,100 for a rally toward $2,300.
Ethereum (ETH) is displaying bullish divergence on technical indicators, suggesting a possible trend reversal after weeks of price declines. Even though Ethereum (ETH) experiences resistance at key price levels the market may shift positively if certain conditions are met.
Key Support and Resistance Levels for Ethereum
Ethereum has struggled to maintain its price above $2,100, a level analysts consider crucial for a trend reversal. Crypto analyst Ali Martinez states ETH needs to surpass $2,300 after reaching $2,100 for bullish confirmation..The current Ethereum market price stands at $1,840 with a 2.1% upward shift observed during the past day.
Market data shows that Ethereum dropped to $1,754 earlier this month, marking its lowest price in over a year.Some traders believe that the cryptocurrency develops bullish patterns even during its downward trend. Analyst Merlijn The Trade pointed out that ETH’s daily Relative Strength Index (RSI) is making higher lows while its price forms lower lows. This divergence suggests weakening selling pressure and a possible move higher.
On-chain data from Glassnode shows that Ethereum network activity is increasing, with over 500,000 active addresses recorded on February 6, 2025. This rise in network usage could indicate growing investor interest.
Ethereum Whales and Market Sentiment
Whale activity has also been a key factor in Ethereum’s recent price action. Blockchain monitoring service Whale Alert reported that large investors moved substantial amounts of ETH to exchanges, increasing selling pressure. However, other whale groups have been accumulating, with addresses holding 10,000 to 100,000 ETH adding 290,000 ETH to their holdings over the weekend.
Exchange reserves have reached multi-month lows, with 940,000 ETH withdrawn in March, suggesting that long-term holders are moving assets to private wallets or staking platforms. Staking protocols received more than 530,000 ETH which confirms Ethereum maintains durability as a long-term value asset.
If Ethereum maintains support at $1,800 and breaks above $2,100, analysts suggest a potential rally toward $2,300 and beyond.A price drop to below $1,720 would trigger additional market decline. Traders are closely watching technical indicators and whale movements to assess Ethereum’s next move.
