Ethereum Shows Early Strength as Analysts See Signs of a Potential Breakout

Ethereum is trading near $2,825, with market sentiment still stuck in Extreme Fear. Even so, ETH reacted firmly after dipping below $2,900, forming a stabilization zone around $2,800. This slowdown in downward momentum suggests that buyers are defending key areas despite ongoing macro uncertainty.

One of the stronger signals comes from analyst Michaël van de Poppe, who notes that Ethereum has remained stable against Bitcoin even as BTC saw heavy downside.

He describes ETH/BTC as holding within a strong support range — an “ideal buy zone,” in his words. His chart shows that ETH/BTC has not broken down during Bitcoin’s volatility, a pattern that often appears before periods where Ethereum outperforms. If Bitcoin is forming a local bottom, ETH may be the first to benefit.

The ETHUSDT chart also shows Ethereum rebounding from the lower boundary of a descending channel. ETH has reclaimed a short-term trendline that was lost during the breakdown — typically one of the earliest signs of weakening bearish momentum.

Buyers have repeatedly defended the same support area, and if this continues, a move toward the upper channel line becomes increasingly likely as the next relief target.

After dropping from above $3,050 and breaking below $2,900, Ethereum’s chart shows a classic capitulation event with high selling volume. Following that, price action transitioned into quiet sideways movement with lighter volume — a sign that panic selling has faded and the market has shifted to consolidation.

Market indicators also show potential for recovery.
The 14-Day RSI is around 41 — near oversold but not weak enough to signal a deeper collapse.
Short-term forecasting models project a possible move toward $3,171, indicating that a moderate rebound remains likely if support holds.

Both the 50-Day and 200-Day SMAs remain above current levels. Reclaiming either could fuel stronger bullish momentum once confidence improves.

Ethereum’s price action suggests quiet strength despite fear dominating the market and Bitcoin showing significant weakness. Historically, periods like this often build the foundation for future ETH outperformance during market recovery phases.

Analysts now view Ethereum’s resilience as an early indicator that it may lead the next upswing — especially if Bitcoin continues forming a potential bottom.