Is Ethereum’s Bullish Divergence Still Valid? What the ETH Rally Reveals

Current Price Trends and Market Behavior

Despite a generally bearish market, Ethereum (ETH) has shown a notable ascending trend, with its price maintaining support along an upward trend line. The price has been trading within a rising wedge formation, which typically predicts a potential drop following a breakout from its apex. The key question now is whether ETH can reclaim the crucial resistance level of $2,675.

Impact of ETH/BTC Pair on ETH Price

The movement of ETH against Bitcoin (BTC) often influences its value against Tether (USDT). When ETH shows strength against BTC, a rise in its value against USDT is usually anticipated. The ETH/BTC pair recently reversed sharply and is holding certain levels, suggesting that a recovery might support a bullish trend for ETH in the near future.

ETH/BTC Pair Performance

Since early 2023, the ETH/BTC pair has been trapped within a descending parallel channel, struggling to break resistance. However, after reaching levels similar to those before the 2021 bull run at 0.042 BTC, ETH appears to be gaining strength. Although still under bearish influence, there is potential for a bullish reversal. The weekly candle shows that bulls are striving for a strong rebound, which could push the ETH/BTC pair toward the average zones of the channel.

ETH/USDT Price Action

Similarly, the ETH/USDT pair is battling bearish pressure as the end of the month approaches. The token’s price is expected to experience volatility during this period. Despite this, holding the lower support zone suggests that bulls are becoming more active, which may help push prices above the bearish zone.

Technical Indicators and Future Predictions

Recent charts indicate that ETH broke down from the rising wedge but remained above the lower support zone, which ranges between $2,347 and $2,415. Although trading volume remains subdued, the Relative Strength Index (RSI) continues to show an elevated trend. This suggests strong bullish support, and there is optimism that ETH might close the monthly trade on a positive note, potentially reclaiming levels around $2,682 and possibly surpassing $2,700.

Conclusion: Bullish Outlook for Ethereum

In summary, the bullish possibilities for Ethereum (ETH) remain promising, with the potential to rally as the end of the quarter approaches. While the crypto market endures its winter, ETH’s resilience and technical indicators point towards a possible recovery and price surge in the near future.