Ethereum Price Shows Bullish Divergence at $2,900: Is an Upside Trend on the Horizon?

Ethereum's price is currently exhibiting a bullish divergence at the $2,900 support level, indicating a possible upward shift toward $3,425, provided that trading volume supports this movement.

Key Takeaways

Ethereum is showing a bullish divergence at a crucial $2,900 support level.
This technical pattern suggests a potential upward move toward the $3,425 mark.
A confirmed bullish divergence requires an impulsive candle with increased buying volume.
If support at $2,900 holds, the price could rise; if it breaks, the downward trend may continue.

Ethereum price bullish divergence suggest higher prices incoming.

Understanding the Current Price Action of Ethereum

Ethereum price marks bullish divergence at $2,900, upside pressure building? - 1
ETHUSDT (4H) Chart, Source: TradingView

Ethereum's current price structure indicates that it recently tested the $2,900 level, a significant support zone that has previously seen substantial buying interest. This region has now established a noteworthy bullish divergence: while the price made a lower low, the Relative Strength Index (RSI) formed a higher low. This shift suggests a change in internal momentum, making the development significant.

To date, the divergence has prompted a minor uptick in price, reflecting initial signs of demand entering the market. However, this divergence is not yet fully confirmed. For it to become active, Ethereum needs to form an impulsive bullish candle accompanied by a noticeable increase in buying volume. A strong bullish engulfing candle indicated on the volume profile would be the most robust signal that momentum has decisively moved in favor of buyers.

If this confirmation is achieved, the immediate target for upward movement lies at the $3,425 level. This price point represents the upper boundary of the current trading range and coincides with both structural barriers and liquidity pools. A move towards this range high remains technically plausible as long as Ethereum manages to uphold the $2,900 support and maintains the bullish divergence formation.

Outlook for Future Price Actions

Broadly speaking, a confirmed bullish divergence could propel Ethereum toward the $3,425 resistance level in the near term. Conversely, if the price dips below $2,900, it would invalidate this bullish setup and shift momentum back to bearish pressures, potentially prolonging the downward trend.