Ethereum price is forming a bullish divergence at the $2,900 support level, hinting at a potential shift toward $3,425 if volume confirms the move.
Summary
- Bullish divergence forming as RSI rises while price hits a lower low.
- $2,900 acting as major high-time-frame support.
- Break toward $3,425 likely if volume confirms the setup.
Ethereum’s (ETH) price action has approached a decisive technical moment after defending the $2,900 region, a high-time-frame support that has historically attracted significant buying pressure.
A newly formed bullish divergence between price and RSI now strengthens the case for a potential upward rotation, Furthermore, Tom Lee’s recent claim that Ethereum is entering a “supercycle” has further sparked debate, adding to market speculation around the next major move.
Ethereum price key technical points
- Bullish Divergence at $2,900: RSI has formed a higher low while price printed a lower low, signalling early bullish momentum.
- Immediate Target at $3,425: The $3,425 resistance sits at the range high and is the next major upside objective.
- Volume Confirmation Needed: A strong impulsive candle and bullish volume profile are required to validate the divergence.
Ethereum’s current structure shows price recently retested the $2,900 level, a high-time-frame support zone that has held multiple times in previous corrective phases.
This region has now produced a notable bullish divergence: price printed a lower low while RSI formed a higher low, indicating a shift in internal momentum beneath the surface.
Divergences at major support levels often precede early reversal attempts, making this development significant.
So far, the divergence has triggered a minor lower-time-frame bounce, representing the first signs of reactive demand entering the market. However, the divergence is not fully confirmed. For activation, Ethereum needs to print an impulsive bullish candle supported by a clear uptick in buying volume. A bullish engulfing move on the volume profile would provide the strongest signal that momentum is shifting firmly in favour of buyers.
If this confirmation arrives, the next upside objective lies at the $3,425 region. This level marks the upper boundary of the current trading range and aligns with structural resistance and liquidity pools. A rotation toward this range high becomes technically viable as long as Ethereum defends $2,900 and maintains the bullish divergence formation.
Upside pressure is beginning to build, but Ethereum must continue to hold key support and show continuation. Failure to confirm the divergence risks a breakdown that could reopen lower support targets.
What to expect in the coming price action
A confirmed bullish divergence could send Ethereum toward the $3,425 resistance level in the short term. However, a breakdown below $2,900 would invalidate the setup and shift momentum back to the bears to continue the down-trend.
