Ethereum Breaks Trendline, Bullish Divergence Signals $3,800 Rally Ahead

Ethereum breaks key trendline, suggesting potential bullish reversal to $3,800.

RSI divergence signals trend exhaustion under $1,600, marking a possible reversal.

Ethereum’s macro support aligns with historic lows, boosting confidence in recovery.

Ethereum’s market structure turned bullish after breaking a long-standing descending trendline, with RSI divergence signaling trend exhaustion below $1,600. Traders now anticipate a recovery phase, targeting levels well above $3,800.

Bullish Divergence Confirms a Major Shift

Ethereum’s daily chart reveals a clean break above its 20-month descending trendline. The price dipped to $1,520 in March 2024, breaking under June 2023’s $1,620 low. RSI, however, bottomed higher, confirming bullish divergence and momentum buildup.

This divergence across timeframes prompted a closer examination of trend reversal potential. Market analyst Javon Marks provided a detailed technical analysis of Ethereum’s recent pattern shift. From that divergence, he assessed structure strength and price positioning above broken resistance.

Source: Javon Marks

Looking at the RSI setup, a rising support line was visible from the June to March lows. The indicator climbed from 25.84 to 34.16, even as Ethereum posted a fresh price drop. This separation between price and strength marked a high-confidence bullish divergence.

Once price reclaimed the descending trendline, the analyst focused on the structural change. Ethereum climbed back above $1,840 and sustained the breakout without any immediate rejection. Momentum favored bulls as the trendline flipped from resistance into short-term support.

Seeing how momentum shifted, the analyst narrowed in on the developing higher low. That structure was built atop broken resistance and formed the foundation for recovery targets. A potential +120% rally was projected, stretching toward the $3,800–$4,000 zone.

Macro Regression Holds Structural Support

Ethereum’s logarithmic regression channel defines macro bottoms across all major cycles. Each low since 2016 touched the lower green band, including the 2018 and 2022 crashes. The current structure mirrors those lows and aligns with long-term cyclical rhythm.

That setup raised new interest in Ethereum’s historical regression behavior. Mister Crypto studied the channel reaction to validate another macro bottom. He focused on price support near $1,900 along the lower green boundary.

Source: Mister Crypto

Given the chart’s layout, he observes the price now rebounding from the same historic zone. That support region triggered past rallies following deep corrections and peak exhaustion. Ethereum’s reaction suggests another potential base forming within the structural boundaries.

Once price tested support, he elaborated on the symmetry inside the multi-year channel. Ethereum remained within the regression zone from 2016 to 2025 without breakdowns. He outlined the current move as a possible reset ahead of a bullish expansion.