Ethereum Shows Potential for Breakout Amid Hidden Bullish Divergence and Fading Bearish Volume

• Ethereum’s price forms higher lows while RSI shows lower lows, indicating a hidden bullish divergence and continuation potential.

• Bearish volume has significantly decreased over the past month, signaling reduced selling pressure and growing buyer control.

• Ethereum has defended key July support twice and consolidates near range highs, often a precursor to sharp bullish breakouts.

Ethereum’s hidden bullish momentum and fading bearish volume signal a breakout opportunity. Discover key insights and expert analysis from COINOTAG.

What Is Driving Ethereum’s Hidden Bullish Strength?

Ethereum’s hidden bullish strength stems from its price forming higher lows while the Relative Strength Index (RSI) simultaneously makes lower lows, a classic hidden bullish divergence. This pattern suggests strong underlying momentum and continuation potential despite broader market uncertainty.

How Does Bearish Volume Impact Ethereum’s Price Action?

Bearish volume has declined considerably over the last month, indicating that selling pressure is diminishing. This reduction in bearish volume often flushes out weaker holders, allowing stronger hands to accumulate and stabilize the price near critical support levels, reinforcing Ethereum’s resilience.

Why Is Ethereum’s Consolidation Near Range Highs Significant?

Ethereum’s repeated defense of July’s support and consolidation near range highs typically precedes sharp bullish breakouts. This price behavior, combined with fading bearish volume, signals that buyers are quietly gaining control and preparing for a potential upward move.

What Are the Long-Term Breakout Targets for Ethereum?

According to crypto analyst Marcus Corvinus, Ethereum is positioned for a breakout targeting the $7,000–$8,000 range. While the exact timing remains uncertain, the current technical structure strongly supports continuation rather than reversal, reflecting robust market confidence.

Frequently Asked Questions

What is hidden bullish divergence in Ethereum’s price?

Hidden bullish divergence occurs when Ethereum’s price forms higher lows while the RSI makes lower lows, indicating underlying strength and a likely continuation of the uptrend.

How does fading bearish volume affect Ethereum’s market outlook?

Fading bearish volume suggests selling pressure is weakening, which often leads to price stabilization and potential upward momentum as buyers gain control.

How to Analyze Ethereum’s Bullish Continuation Setup?

To analyze Ethereum’s bullish continuation, observe the hidden bullish divergence between price and RSI, monitor bearish volume trends, and track support levels. These indicators combined provide a clear picture of potential breakout readiness.

Key Takeaways

• Hidden Bullish Divergence: Ethereum’s price and RSI patterns indicate strong continuation potential.
• Fading Bearish Volume: Declining selling pressure supports price stability and buyer control.
• Breakout Targets: Ethereum aims for $7,000–$8,000, reflecting robust market structure and confidence.

Conclusion

Ethereum’s consolidation with higher lows and fading bearish volume reveals hidden bullish momentum, positioning it for a likely breakout to $7,000–$8,000. This technical strength, supported by expert analysis from COINOTAG, underscores Ethereum’s resilience and potential in the current market cycle.

Ethereum holds firm with higher lows and fading bearish volume, signaling bullish divergence and positioning for a breakout to $7K–$8K.

• Ethereum’s price formed higher lows while RSI made lower lows, indicating a hidden bullish divergence and strong continuation potential.
• Bearish volume has faded significantly over the past month, suggesting selling pressure is drying up and buyers are gaining quiet control.
• Ethereum defended July’s support twice and continues consolidating near range highs, a setup often preceding sharp bullish breakouts.

Ethereum is showing relative strength compared to Bitcoin, as recent price behavior suggests hidden bullish momentum forming under the surface.

Hidden Strength Behind Ethereum’s Consolidation

Crypto analyst Marcus Corvinus pointed out that Ethereum ($ETH) is holding higher lows, while Bitcoin ($BTC) recently made a lower low. This divergence in price behavior reflects a stronger market structure for Ethereum, despite broader market uncertainty. Corvinus notes this is more than price action — it suggests strong hands are keeping the asset stable.

Adding to this, trading volume on the bearish side has been decreasing throughout the last month. This decline in selling pressure may be flushing out weak hands. Meanwhile, Ethereum has repeatedly tested but not broken July’s key support levels, indicating resilience at crucial zones.

Technical Indicators Support Continuation Setup

The chart also displays a classic hidden bullish divergence—the Relative Strength Index (RSI) has made a lower low, while Ethereum’s price holds a higher low. With this pattern usually indicating a continuation and not a reversal, it demonstrates a possible future upside.

Additionally, Ethereum’s RSI remains in oversold territory, but it has shown strength by defending support twice before. Many traders will label a response like this as foreshadowing renewed momentum. Corvinus suggests that the current market state is not a reversal but rather a consolidation at the upper range.

Breakout Expectations and Long-Term Targets Remain

Ethereum’s current structure hints at a potential breakout scenario. Consolidation at the top of a range, particularly with reduced selling volume, often leads to a breakout in the direction of the prevailing trend. Ethereum’s continued ability to defend support, while building on a higher low pattern, keeps the bullish outlook intact.

Corvinus maintains a bullish cycle target of $7,000–$8,000 for Ethereum. While the exact timing remains uncertain, the structure implies that continuation is not a matter of speculation but expectation. As the market awaits confirmation, Ethereum continues to position itself with relative technical strength.