Followin' the struggle of Ethereum for several days, it finally regained its ground, breaking through the $2,800 mark. The bulls have been unable to gain momentum, and the selling pressure has kept ETH below the key resistance level.
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On Friday, the market was hit by negative news as one of the top cryptocurrency exchanges, Bybit, was hacked, resulting in the loss of $1.4 billion in ETH. This event triggered a panic sell-off, causing Ethereum's price to drop to a lower demand level, adding more uncertainty to its short-term outlook.
The market may see a reversal
Ethereum's buy-side divergence - a key indicator - suggests that despite the price decline, buying pressure is increasing. Historically, this divergence signals the start of a recovery rally, as traders and institutions accumulate ETH at lower levels in anticipation of a rebound.
As ETH consolidates and shows bullish signs, the next few days will be crucial in determining whether Ethereum can reclaim the $2,800 area or if further downside is in store. Traders are now focusing on key breakout levels to confirm a strong recovery rally.
Ethereum has been struggling as investors grow increasingly impatient with the massive selling pressure and negative sentiment surrounding the second-largest cryptocurrency. Since late December, ETH has been steadily declining, with no clear signs of recovery. The bulls have failed to reclaim the key resistance levels, and the bears have continued to control the market, pushing the price lower with each failed breakout attempt.
Despite the prolonged bearish trend, on-chain data suggests a potential shift may be on the horizon. Historically, this pattern signals the end of the downtrend and the start of a bullish phase.
When a bullish divergence occurs (Ethereum price declining, but buyer volume increasing), the past trend suggests that selling pressure is waning. This typically indicates that buying momentum is gaining strength as traders start accumulating ETH in anticipation of a trend reversal.
Today, Ethereum is exhibiting a bullish buy-side divergence, similar to the conditions that previously led to a bullish breakout. While the market remains uncertain, this could be an early sign of a new bullish phase. If Ethereum maintains above the current demand level and reclaims $2,800, a strong rebound may follow.
For Ethereum to confirm a bullish breakout, it must regain the $2,800 mark and break above $3,000 to gain the momentum for a sustained uptrend. However, the lack of significant buying pressure suggests that unless buyers step in quickly, ETH may continue to consolidate in a narrow range.
Despite the lack of direct strength, ETH remains above the $2,600 support, which has been a key demand area in recent weeks. As long as Ethereum stays above $2,600 and starts to reclaim the key levels above $2,800, the possibility of a bullish reversal remains. If demand increases and ETH can firmly hold above $2,800, a bullish phase may be imminent.
