Ethereum confirmed a rounded bottom as it cleared $3,375 and now follows a projected rise toward $4,000.
The RSI shows early weakness but price remains strong above $3,200 which confirms breakout support strength.
ETH may face resistance near $3,680 and $3,920 before reaching the $4,000 level during the coming weeks.
Ethereum (ETH) recently broke out from a multi-month accumulation range, now trading near $3,375 on Coinbase. A rounded bottom pattern has formed on the daily chart, suggesting Ethereum may be on track to reach the $4,000 level. This formation often signals a shift from long-term decline to sustained bullish momentum.
https://twitter.com/tempo_cap/status/1946726777675710506 Rounded Bottom Points to Bullish Reversal
The chart shows ETH formed a rounded bottom stretching from mid-March to early July. This pattern, marked by steady lows and gradually rising highs, is considered a reliable reversal setup. The neckline of the rounded bottom aligns with the $3,200 level, which ETH has now surpassed.
Throughout April and May, Ethereum oscillated within a tight horizontal range between $2,800 and $3,200. This range acted as an accumulation zone where price found consistent support. The breakout through $3,200 in July was accompanied by a strong bullish candle, confirming the pattern's breakout condition.
The green diagonal trendline shows long-term upward momentum, providing a base for the rounded structure. This support remained intact during multiple retests. The convergence of the green trendline and neckline formed a key inflection point from which Ethereum launched higher.
Volume during the breakout phase increased moderately, adding validity to the bullish continuation scenario. Market participants appear to have responded to this breakout with new buy interest, signaling a shift in sentiment.
RSI Divergence and Momentum Concerns
Although Ethereum shows bullish structure, the Relative Strength Index (RSI) reveals early warning signs. The RSI has begun forming a bearish divergence, as price makes new highs while momentum weakens. Divergence patterns like this often precede short-term pullbacks.
On the chart, the RSI failed to exceed its previous peak, despite ETH moving past $3,375. This inconsistency suggests a cooling phase may occur before further upside. Momentum-based traders may wait for a reset in RSI before committing to new positions.
However, the RSI remains above the mid-level, which means Ethereum is still in bullish territory. Traders will likely watch this closely for confirmation of either trend continuation or correction. The short-term trendline below price could serve as a bounce area if a pullback occurs.
The divergence does not invalidate the rounded bottom structure, but it introduces caution in the immediate term. A retest of the breakout zone near $3,200 would not break the bullish trend. It would instead reinforce the neckline as a confirmed support level.
Can Ethereum Sustain Momentum Toward $4,000?
With Ethereum now above key resistance, the next psychological level sits at $4,000. The chart projection indicates a stair-stepped path toward this level, with intermittent resistance at $3,680 and $3,920. If ETH remains above $3,200, bulls may maintain control.
The chart outlines a projected parabolic move with higher highs forming through July and August. This trajectory shows price possibly entering a short-term consolidation above $3,600 before resuming its rise. This step-by-step progression mirrors historical Ethereum rallies.
The $4,000 level could act as both a magnet and resistance point. If reached, it may trigger profit-taking or fresh breakout interest. RSI and volume conditions around this price will determine whether ETH can push through or retrace.
Should Ethereum maintain its current momentum, the bullish path laid out by the rounded bottom formation may unfold as projected.
