Ethereum Hidden Bull Divergence Signals Potential 100% Price Surge To Break $4,900 ATH

Ethereum (ETH) is showing signs of a potential reversal amid a Hidden Bull Divergence pattern, with crypto analyst Javon Marks suggesting a possible 140% rally to break its $4,900 all-time high. The pattern forms despite ETH trading below $2,000.

This divergence occurs when the price remains below critical support levels while momentum indicators suggest a bottoming process. Analysts view this as a signal of a potential bullish reversal.

Despite the technical optimism, the broader crypto market faces challenges. U.S. investors continue to pull out of crypto products, with $403 million in outflows recorded last week. In contrast, European and Canadian markets have seen $230 million in inflows, suggesting international investors are buying the dip.

Why Did This Happen?

The U.S. outflows reflect a cautious institutional stance, with investors prioritizing risk management over aggressive accumulation. Meanwhile, international markets are capitalizing on lower entry points, indicating a divergence in sentiment.

Ethereum's TVL is being supported by stablecoin growth, which is expected to expand significantly. Over half of stablecoin activity already occurs on Ethereum, and this trend is likely to continue as the market grows.

How Markets Responded

Ethereum ETF inflows and outflows reflect institutional demand and influence supply and liquidity dynamics. Sustained inflows are seen as a positive sign for Ethereum's institutional adoption, while outflows suggest investors are reassessing exposure.

The market reaction is mixed. While some analysts are optimistic about Ethereum's long-term trajectory, others caution about near-term volatility. For example, Standard Chartered has cut its 2026 price target for ETH to $7,500 from $12,000, citing broader crypto weakness and Bitcoin's performance.

What Analysts Are Watching

Crypto analyst Javon Marks predicts a potential move to $5,000 by mid-year and even a broader bullish case for ETH to reach $8,500. However, not all analysts agree with this outlook. Trader Tardigrade warns of a Bearish Pennant pattern that could send ETH as low as $1,136 in the short term.

Ethereum's product-market fit is strengthening due to three key drivers: tokenization and privacy on Ethereum, AI and AI-agents using Ethereum for payments and verification, and creators adopting 'proof of human' and other standards on Ethereum L2 according to Morningstar analysis.

Bitmine has become one of the largest Ethereum holders, with staked ETH expected to generate $252 million in annual rewards. The company sees Ethereum as a long-term investment and has acquired 45,759 ETH in the past week alone.

Overall, while Ethereum's path is not without risks, the underlying fundamentals and technical patterns suggest a strong possibility of a rebound. Investors should monitor ETF flows, institutional positioning, and macroeconomic conditions to better assess Ethereum's trajectory.