TLDR

Ethereum Bullish RSI divergence on the 4H chart signals fading downside momentum.
ETH rebounded strongly from the $2,800 zone, reclaiming key intraday support.
Macro structure remains intact with ETH holding major moving average support.
Fast market structure reclaim points to strong dip-buying and recovery potential

Ethereum price is showing early signs of recovery following a sharp sell-off that pushed ETH toward the $2,800 zone. Multiple technical signals across short-term and macro timeframes suggest weakening bearish momentum and renewed buyer interest. Analysts now point to a potential continuation move if key reclaimed levels continue to hold, with upside targets gradually coming back into focus.

Ethereum Price RSI Divergence Signals Momentum Shift

According to analyst Trader Tardigrade, Ethereum price recently printed a bullish divergence on the 4-hour Relative Strength Index. While price action formed lower lows during the decline, the RSI produced higher lows, signaling diminishing downside momentum. Such divergence patterns often appear near local bottoms after extended corrective phases.

Price reacted decisively from the $2,800 zone, confirming the momentum shift highlighted by the indicator. The rebound coincided with ETH reclaiming short-term structural levels, suggesting that sellers were losing control. The alignment between RSI improvement and price stabilization strengthens the technical validity of the signal.

From a market structure perspective, sustained strength above reclaimed intraday support remains critical. If Ethereum price continues forming higher lows, the divergence could evolve into a broader recovery phase. A failure to hold these levels, however, would weaken the signal and reopen downside risks.

Macro Cycle Structure Remains Constructive

Meanwhile, according to analyst BACH, Ethereum’s broader market structure remains intact despite recent volatility. The macro chart shows ETH respecting long-term dynamic supports, including the 200-day and 200-week moving averages. Historically, these zones have acted as reliable demand zones during ongoing bullish cycles.

Momentum indicators on the macro timeframe reflect cyclical resets rather than trend exhaustion. Previous momentum troughs aligned with higher lows in price, followed by sustained upward expansions. The latest momentum pullback mirrors these historical patterns, reinforcing the view of a corrective phase within a larger trend.

More so, the projections suggest Ethereum price may be positioning for another expansion leg if macro support continues to hold. Measured move targets on the chart indicate room for upside continuation once momentum rebuilds. In this context, recent weakness is framed as structural consolidation rather than a breakdown.

Rapid Market Structure Reclaim Supports Recovery

Furthermore, analyst Michaël van de Poppe highlighted Ethereum’s swift market structure reclaim following a brief breakdown below key moving averages. ETH quickly recovered lost levels, signaling aggressive dip-buying and efficient absorption of downside liquidity. Such rapid reversals often reflect strong underlying demand.

Volume and candle behavior during the rebound indicate participation beyond thin liquidity conditions. The reclaim of short-term moving averages suggests a transition away from distribution toward consolidation or continuation. This technical behavior typically favors trend stability when support levels are respected.

According to Poppe, the speed of the recovery itself is a bullish technical signal. While overhead resistance remains in place, Ethereum price holding above reclaimed zones improves the probability of continuation. As long as these supports remain intact, renewed downside pressure appears limited in the near term.

 

The post Ethereum Price Signals Recovery as RSI Divergence Sparks Rebound appeared first on CoinCentral.

---

Filed under: News - @ January 28, 2026 10:26 am