Ethereum News Today: Ethereum signals potential breakout with hidden bullish divergence and fading bearish volume

Ethereum is showing signs of a potential breakout amid strengthening technical indicators and diminishing bearish pressure. The cryptocurrency has formed higher lows while its Relative Strength Index (RSI) records lower lows, a classic pattern of hidden bullish divergence that suggests continued upward momentum [1]. This divergence reflects strong underlying demand, with selling pressure significantly fading over the past month, signaling growing buyer control and market stability [1].

Ethereum has also successfully defended key support levels in July on multiple occasions, reinforcing its resilience and indicating that sellers are struggling to push the price below critical thresholds. The repeated consolidation near range highs is a technical setup often observed before sharp bullish breakouts [1]. Analysts highlight that Ethereum's behavior has contrasted with Bitcoin's, which has shown lower lows in the same period, suggesting a stronger market structure for ETH [1].

The declining bearish volume further supports the idea that weaker holders are being flushed out, paving the way for stronger accumulation by institutional and long-term buyers. This dynamic creates a more stable price environment and reinforces Ethereum's position as a leading asset in the current market cycle. Crypto analyst Marcus Corvinus has noted that the current setup is not indicative of a reversal but rather a consolidation phase within an overall bullish trend [1]. Corvinus predicts that Ethereum could target the $7,000–$8,000 range, with the technical structure favoring continuation rather than a sharp downturn [1].

The broader market context has not dampened Ethereum's momentum, with the hidden bullish divergence and fading bearish volume acting as key indicators of resilience. Ethereum’s ability to maintain higher lows and control its price near critical levels signals that the market is preparing for a potential upward move, with the current technical environment favoring a bullish breakout. As Ethereum continues to consolidate and stabilize, the stage is set for a move toward key resistance levels, potentially unlocking new price territory.

The technical indicators—higher lows, lower RSI lows, and reduced bearish volume—collectively point to a continuation pattern rather than a reversal. This divergence between price and RSI is a well-documented bullish signal, and Ethereum’s consistent defense of key support levels further strengthens this case. With the market structure and volume trends pointing in a favorable direction, the conditions for a breakout to $7,000–$8,000 appear increasingly aligned.

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[1] https://en.coinotag.com/ethereum-shows-potential-for-breakout-amid-hidden-bullish-divergence-and-fading-bearish-volume/