Ethereum Price Bullish Divergence at $2,900 Hints at $3,425 Upside
Ethereum price is forming a clear bullish divergence on the 4-hour chart as the Relative Strength Index (RSI) posts a higher low while price records a lower low at the $2,900 support level. This high-time-frame support has historically attracted buyers during corrective phases, reinforcing its significance.
For a valid trend reversal, traders need volume confirmation in the form of an impulsive bullish candle accompanied by rising trading volume. Should Ethereum break above short-term resistance, the next major upside target sits at $3,425—the upper boundary of its current trading range and a zone of structural resistance. If support at $2,900 holds and buyers step in, Ethereum price could rotate toward this level. Failure to confirm the divergence with volume risks a breakdown and a retest of lower support levels.
Bullish
The bullish divergence between price and RSI at a well-established $2,900 support suggests growing internal momentum, a classic early reversal signal. Historically, Ethereum has bounced from major supports when similar divergences appeared—most notably in mid-2021 and late-2023—leading to extended rallies. In the short term, a successful break with volume could prompt a quick move toward the $3,425 resistance zone. Over the longer term, sustaining above $2,900 and confirming the divergence enhances the probability of a broader uptrend. Conversely, failure to secure volume confirmation would favor bears, risking a deeper correction.