- Ethereum shows strong bullish divergence on charts
- A 120% price recovery may push ETH near $4,000
- Technical signals suggest this could be the start of a longer rally
Bullish Divergence Points to Ethereum Recovery
Ethereum ($ETH), the second-largest cryptocurrency by market cap, is flashing strong bullish divergence signals across several technical charts. Traders and analysts see this pattern as an early sign of a major price reversal—one that could drive Ethereum’s value significantly higher in the coming weeks.
Bullish divergence occurs when price trends downward while momentum indicators like RSI (Relative Strength Index) trend upward. This disconnection suggests weakening selling pressure and a growing potential for a rebound. In Ethereum’s case, the divergence has held consistently, building strong confidence among market watchers.
Price Targets Point to $4,000 and Beyond
Based on current technical analysis, Ethereum could be gearing up for a +120% move from its recent lows—putting the price just below the $4,000 mark. While $4,000 is a key psychological resistance level, many believe this is just the beginning of a longer-term rally, especially with upcoming network upgrades and rising institutional interest.
Historically, Ethereum has demonstrated sharp price surges following extended correction phases. With on-chain metrics improving and investor sentiment shifting positively, the groundwork for a bullish breakout appears to be forming.
What’s Fueling Ethereum’s Momentum?
Several factors are contributing to Ethereum’s renewed bullish outlook:
- Layer 2 Growth: Platforms like Arbitrum and Optimism are scaling Ethereum’s capabilities.
- Staking Activity: ETH staking continues to rise, tightening circulating supply.
- Macro Shifts: Improving global economic conditions are boosting risk asset appetite.
These elements, combined with the bullish divergence pattern, make a strong case for a sustained Ethereum uptrend.
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