Ethereum Price Jumps 10% on Reversal Cues — But History Warns Of A Ceiling
Ethereum has jumped over 10% since December lows, supported by bullish divergence and reduced selling pressure, but faces a critical resistance ceiling.Summary
Ethereum's price has increased by over 10% since bottoming on December 18, reclaiming the $3,000 level, driven by a reappearance of a bullish reversal pattern known as bullish divergence on the Relative Strength Index (RSI).
This momentum signal, where price made a lower low while RSI made a higher low, previously preceded a 27% rally. This time, the move is reinforced by on-chain data showing a sharp drop (over 92%) in spent coins activity, suggesting sellers have significantly stepped back.
Despite these positive indicators, Ethereum faces critical resistance. Immediate support is at $3,040, but the key ceiling is $3,470, which capped the previous rally. A failure to break this level suggests a repeat rejection, while a clean daily close above it could target higher resistance zones like $3,660 and $3,910. Downside risk remains if ETH loses $2,940.
(Source：BeInCrypto)