Ethereum (ETH) Price Poised to Recover as Hidden Bullish Divergence Pattern Precedes a Breakout Above $4,850

Ethereum price is poised for further recovery as analysts have identified hidden bullish divergence that could enhance the previous rally. The pattern which indicates momentum shifts has it that, contrary to the present slump in the price, ETH could be on course to rise above its previous record high of $4850.

Analysts have identified a technical pattern that could see Ethereum (ETH) price continue to recover and possibly reach $8,000.

Analyst Javon Marks noted on X that Ethereum has now confirmed a Hidden Bullish Divergence.

This pattern occurs when an asset’s price makes a higher low while its relative strength index (RSI) forms a lower low.

Such a setup often leads to a continuation of the previous uptrend.

With Ethereum already displaying this pattern, analysts are looking at the next major resistance level at $4,850. A breakout above this level could pave the way for a rally to $8,000.

However, if this pattern fails and breaks down, it could see Ethereum price slump to $1,600.

Recently, Ethereum fell below its realized price of $2,054 for the first time since February 2023.

The realized price represents the average price at which ETH tokens last moved on-chain, offering insights into the overall market sentiment and the profitability of holders.

On-chain data from Glassnode revealed that Ethereum’s market value to realized value (MVRV) dropped to 0.93, indicating an average unrealized loss of 7% for ETH holders.

Historically, dips below the realized price have often been followed by market recoveries as long-term investors tend to accumulate during these periods.

Meanwhile, a recent CoinGape price analysis suggests that Ethereum might see further downside if selling pressure continues to increase.

Whale transactions to exchanges have intensified, raising concerns about a potential drop in ETH price to $1,500.

However, a bullish diamond pattern suggests that Ethereum could rebound if it breaks key resistance levels.

A recent report by Delta discussed the implications of a potential altcoin season and the role of Ethereum in driving broader cryptocurrency market cycles.

According to the analysis, a substantial rally in Ethereum above the $4,850 mark may be required to set the stage for a broader altcoin season.

This level represents a crucial resistance zone, previously reached in January 2022, and breaking through it could be pivotal for propelling ETH to new highs.

Moreover, this move may be instrumental in attracting significant institutional and retail investor interest, setting the multiplier effect in motion.

After the events of 2022, many altcoins are still recovering from recent pullbacks, and this influx of investment could be beneficial for them.

Analysts have identified the $1,600 to $1,900 range as a potential support zone for Ethereum. Recent data from Glassnode indicates that around 600,000 to 700,000 ETH were accumulated near the $1,900 level.

If the top altcoin manages to maintain this support and gains momentum, the next hurdle will be at $2,200. A breakout from this level could set the stage for a rally to $4,850, confirming the path to $8,000.