[Analysis] "Ethereum Detects Bottom Signal...Signs of Bullish Reversal"

Ethereum (ETH) is showing signs of a technical rebound after a prolonged downtrend, according to analysis.

On the 5th, CryptoQuant's on-chain data analyst 'maartuun' diagnosed that "Ethereum is escaping strong selling pressure and showing bullish divergence."

Ethereum did not join the upward trend when Bitcoin hit an all-time high in November 2024. Despite the favorable news of Ethereum spot ETF approval, the bearish trend continued, failing to recover previous highs. During this period, Ethereum's price fell from $4,000 to $1,800.

According to the analysis, the main cause of Ethereum's price decline is strong market sell pressure in the futures market. Since February last year, selling pressure has dominated the market for over a year, overwhelming buying pressure. However, recently, this selling pressure is gradually weakening.

Notably, even as Ethereum's price declines, the net market sell volume is raising its bottom, indicating a bullish divergence, a typical sign of a bullish reversal.

Maartuun emphasized, "Currently, it may be a temporary rebound phase, but it is clear that selling pressure is decreasing," adding, "This could be a signal that Ethereum is approaching the bottom." He further noted, "The possibility of buying pressure gaining the upper hand is increasing."

Meanwhile, Ethereum is trading at around $1,814, down 0.1% from the previous day, in the Binance Tether (USDT) market as of 9:14 a.m. today.