Despite Recent Struggles, Ethereum (ETH) Shows Signs of a Potential Bullish Breakout

Despite Ethereum’s recent struggles amid a broader market downturn, some analysts are still seeing signs of a potential bullish breakout.

Despite Ethereum's (ETH) recent struggles amid a broader market downturn, some analysts are still seeing signs of a potential bullish breakout.

One such voice is the pseudonymous crypto analyst NotWojak, who shared a contrarian take on TradingView, suggesting Ethereum's downtrend may be on the verge of reversing.

While the cryptocurrency continues to face pressure from sustained selloffs and negative sentiment, currently hovering near recent lows, NotWoajk highlights that multiple liquidity sweeps occurred at key levels—actions that often precede a reversal as market makers collect stop-loss orders before pushing prices in the opposite direction.

These liquidity events, combined with two prominent supply zones on the chart, may set the stage for a shift in market momentum. According to NotWoajk, these zones could act as catalysts that trigger renewed demand and a break from the current downtrend.

The analyst suggests that Ethereum's consistent lower lows might be misleading. When paired with indicators like bullish divergence on RSI or MACD crossovers, these price movements could signal a setup for a trend reversal rather than continued decline.

NotWoajk's thesis is that the market is "shaking out weak hands" before staging a strong rally. If Ethereum manages to reclaim key support/resistance levels, a breakout toward $3,500 and beyond might not be off the table—even in the face of current bearish market conditions.

While many in the crypto community remain cautious, especially with Ethereum underperforming relative to Bitcoin (BTC) in recent weeks, NotWoajk's bullish prediction has nonetheless sparked discussion among technical traders and ETH believers. The possibility of Ethereum defying the odds and leading a recovery wave has reignited interest in the charts, with some traders now seeing a buy-the-dip opportunity.

Ethereum's long-term fundamentals—ranging from its dominance in decentralized finance (DeFi) and non-fungible tokens (NFTs) to the continued evolution of its staking ecosystem—remain strong. And if NotWoajk's technical read proves accurate, ETH might just be gearing up for a surprise comeback.

As always, traders are urged to watch key levels and volume confirmations as Ethereum tests the waters for a potential breakout from its bearish grip.