- Ethereum confirms a bullish RSI divergence and wedge breakout, signaling potential trend reversal after months of decline.
- Strong OBV rise and RSI above 55 show increasing buyer momentum, pushing ETH from $1,550 to above $1,900 in sustained rally.
- With resistance cleared and no major barriers until $2,700, ETH eyes a 120% surge toward $4,000 amid growing bullish sentiment.
According to Javon marks, Ethereum (ETH) has begun flashing strong bullish signals after confirming a critical divergence pattern on the daily timeframe. The price action reflects a potential reversal forming after months of decline. Investors now anticipate a powerful upside recovery that could push ETH towards $4,000. This bullish structure has emerged following significant changes in volume and momentum indicators.
The first low formed around August 2023 when ETH dropped to nearly $1,530. A second low appeared in early April 2025, slightly above $1,550. However, the Relative Strength Index (RSI) indicated otherwise. While the price fell, RSI registered a higher low, indicating less selling pressure. This clear bullish divergence is an indication of a potential reversal of market structure from bearish to bullish.
Besides the RSI, On Balance Volume (OBV) also confirmed positive movement. After the second low, OBV rose, showing stronger volume on upward price candles. Hence, buyers seem to be returning aggressively. Moreover, the RSI crossed 55 recently, confirming strengthening bullish momentum. Price action has already moved from $1,550 to above $1,900, reinforcing the breakout.
Falling Wedge Breakout Implies Further Gains
The chart resembles a classic falling wedge pattern. This pattern often signals a trend reversal when paired with a volume increase. ETH has broken above the wedge’s resistance, confirming the bullish bias. Additionally, a horizontal trendline marks the $1,550 zone as a strong accumulation level.
The structure points toward a recovery with upside targets near $2,400 and $2,700. Momentum supports this view, and recent candles have shown consistent upward movement since mid-April 2025. Consequently, the bullish divergence now seems validated, with ETH shifting out of its downtrend.
Momentum Indicators Reinforce the Bullish Outlook
Momentum indicators like RSI and OBV are both aligned with bullish continuation. Besides, the Ethereum price now trades above prior resistance levels. No major resistance zones appear until the $2,400–$2,700 range. Moreover, the uptrend is backed by stronger buying interest.
Thus, Ethereum’s prospects increasingly appear favorable. In case of sustained bullish momentum, ETH has the potential to rise another 120% to the $4,000 level. Such a rise may herald a change in sentiment and initiate a new cycle of bulls.
