Ethereum is showing potential signs of a bullish reversal due to RSI divergence, indicating weakening bearish pressure and increasing buyer interest.
Understanding Bullish Divergence
A Regular Bullish Divergence occurs when the price of an asset creates lower lows while an oscillator, such as the Relative Strength Index (RSI), makes higher highs. In Ethereum's case, the price has been declining since August 2023 until April 2025, while the RSI has been rising, indicating a divergence.
Technical Indicators Support Potential Reversal
From November 2024 to April 2025, Ethereum's price action has been consistently declining, continuing its bearish trend. However, the support line at $1,750 could aid in a reversal. Recent RSI values nearing 40 suggest strengthening bullish momentum.
Future Movement Prospects for Ethereum
Although Ethereum has not risen above the $4,100 mark since early 2024, recent RSI readings may indicate an upcoming trend change. A short-term rally could push Ethereum toward the $4,000 target.
Considering the current technical indicators and the potential for bullish divergence, Ethereum may be on the verge of a significant reversal that will attract the attention of traders and investors.
