Emma Nelson 
Ethereum price is showing signs of potential further recovery as analysts have uncovered a hidden bullish divergence that could propel the cryptocurrency beyond its previous highs. Despite the current price slump, this divergence suggests a shift in momentum that might push ETH to surpass its all-time high of $4,850. If this pattern holds, Ethereum could be poised for a significant surge toward $8,000, a move that is likely to spark a broader altcoin rally.
Ethereum Price
Hidden Bullish Divergence Signals Potential Ethereum Price Rally to $8,000
Analyst Javon Marks shared his insights on the X platform, confirming that Ethereum has formed a Hidden Bullish Divergence, a technical pattern that often signals the continuation of an existing uptrend. This suggests that despite a recent price pullback, the underlying momentum remains intact and could result in a price recovery. The divergence occurs when an asset’s price makes a higher low, while the relative strength index (RSI) forms a lower low, signaling a potential shift in market momentum.
The Hidden Bullish Divergence is a strong indication that Ethereum’s price could resume its upward trajectory, with the next major resistance level being the previous all-time high of $4,850. A successful breakout above this level would open the path for Ethereum to push toward $8,000, a target that would likely stimulate interest in altcoins and drive the market into a new phase of growth.
Ethereum Drops Below Realized Price
Recently, Ethereum’s price fell below its realized price of $2,054, marking the first time since February 2023 that it has done so. The realized price represents the average price at which ETH tokens were last moved on-chain, offering a glimpse into market sentiment and the profitability of holders. According to on-chain data from Glassnode, Ethereum’s Market Value to Realized Value (MVRV) ratio dropped to 0.93, which signifies an average unrealized loss of around 7% for ETH holders. Historically, these dips below the realized price have often preceded market recoveries, with long-term investors typically using this as an opportunity to accumulate more ETH.
However, a recent analysis by CoinGape suggests that Ethereum’s price might face additional downside pressure if selling activity continues to rise. Whale transactions to exchanges have been increasing, raising concerns that ETH might fall below the $1,500 mark. On the other hand, a bullish diamond pattern is emerging, suggesting that if Ethereum breaks through key resistance levels, it could trigger a rebound, reinforcing the bullish outlook.
Momentum Could Trigger Altcoin Rally
A rally above the $4,850 resistance level could be the catalyst for Ethereum’s price to reach $8,000, and this move would likely spark an altcoin rally. Many altcoins tend to follow Ethereum’s price movements, especially when it is experiencing significant growth. As Ethereum leads the charge, institutional and retail investors alike are likely to flock into the market, creating a multiplier effect that could boost other cryptocurrencies. This would be particularly beneficial for altcoins, many of which are still recovering from the effects of recent market pullbacks.
Analysts have identified the $1,600 to $1,900 range as a crucial support zone for Ethereum, with recent Glassnode data indicating that between 600,000 to 700,000 ETH were accumulated near the $1,900 level. If Ethereum can maintain this support and build momentum, the next resistance to watch is at $2,200. A successful breakout above this level would set the stage for a move toward $4,850, and ultimately toward the $8,000 target, solidifying the path for Ethereum and potentially triggering a wider altcoin rally.
With all these factors in play, Ethereum’s price could soon see significant upward movement, marking a critical moment in the broader cryptocurrency market.
