Is Ethereum Finally Bottoming Versus Bitcoin? Bullish Divergence Shows So

Ethereum’s native token, Ether (ETH), has rebounded 10.42% versus Bitcoin (BTC), almost 48 hours after establishing its record low at around 0.175 BTC. As of April 24, the ETH/BTC pair was trading for as high as 0.019  BTC.

Is ETH/BTC Bottoming Out? The Answer is ‘Almost’

Ethereum appears to be flashing a long-awaited reversal signal against Bitcoin, as the ETH/BTC pair shows signs of bullish divergence on the daily chart.

ETH has consistently underperformed BTC since June 2017, having dropped 88.70%. However, technical indicators suggest interim gains for the pair, although they do not guarantee a complete reversal of the eight-year-long bear market.

Notably, ETH/BTC’s daily Relative Strength Index (RSI) is forming higher lows while the price continues to set lower lows, indicating a classic bullish divergence. Such patterns often precede rebounds.

The last time such a setup appeared was in November 2024, when a similar bullish divergence triggered a sharp 24% bounce in the ETH/BTC pair. That move led ETH to retest its 50-day exponential moving average (EMA), which acted as a short-term resistance.

A near-identical fractal may be developing now. As a result, traders eyeing an ETH rebound relative to BTC may want to watch for a confirmed breakout and a retest of the 50-day EMA near 0.021 BTC by May, amounting to a 15% upside.

Ethereum Breaks Out of Descending Triangle After Failed Breakdown Attempt

Ethereum has broken out of a descending triangle pattern against Bitcoin, signaling a potential short-term bullish reversal after weeks of underperformance.

On the 2-hour chart, ETH/BTC initially appeared to break down below the triangle’s support earlier this week. But the move turned into a failed breakdown — a classic bear trap — as buyers quickly reclaimed the range. A bullish breakout preceded this reversal.

The breakout occurred alongside a notable increase in volume, confirming the move. ETH/BTC has since cleared the descending resistance and is consolidating near 0.01917, with an upside target near 0.02051, derived from the triangle’s height. Reaching this level would represent a 7% gain from current prices.

Crucially, the pair is now testing its 200-period EMA around 0.01935. A confirmed close above this resistance could reinforce the bullish momentum and invite more buying interest.

The RSI, now above 60, also supports the breakout with room for further upside before overbought conditions emerge.