Ethereum is showing early signs of strength at the $2,900 support level, where a bullish divergence has formed on the Relative Strength Index (RSI). The pattern suggests that upside pressure may be building, but analysts say confirmation through stronger trading volume is still required.
Ethereum briefly dipped to a lower low this week, yet the RSI formed a higher low. This divergence often signals weakening bearish momentum and can indicate the start of a potential trend reversal. The $2,900 zone has acted as a high-time-frame support area many times in the past, attracting buyers during market pullbacks.
The key level to watch on the upside is $3,425, which represents the top of Ethereum’s current trading range. A move toward this resistance becomes more likely if Ethereum can produce a strong bullish candle backed by increasing volume. Without this confirmation, the divergence remains incomplete.
Early trading activity has shown a small bounce from support, but market structure still depends on whether buyers can maintain momentum. If Ethereum holds above $2,900 and volume expands, a push toward the range high is technically possible. A break below $2,900, however, would invalidate the setup and reopen lower support targets.
For now, Ethereum is at a decisive point. Traders are watching for a confirmed shift in momentum that could shape price action in the coming days.
