Ethereum breakout needs 10% gain above $3,470 to confirm reversal

Beincrypto reports that Ethereum has broken a descending bearish channel but needs roughly a 10% move above $3,470 to confirm the reversal.

The outlet notes the breakout followed a bullish RSI divergence between Oct. 10 and Dec. 18, when price made a lower low while RSI made a higher low, and the token has gained nearly 4% over the past seven days despite being about 33% lower over the past three months.

A hidden bearish RSI divergence forming between Dec. 10 and Jan. 5 — price making a lower high while RSI makes a higher high — could signal consolidation or a pullback, with a next candle below $3,220 confirming that pattern. Derivatives positioning heightens short-term risk: Binance data cited shows roughly $2.20 billion of long liquidation leverage versus about $303 million of short leverage, and long liquidations cluster from around $3,150 down toward $2,850.

Whales added roughly 320,000 ETH over the recent weekend, raising holdings from 101.31 million to 101.63 million ETH (about $1 billion), which supports upside but does not remove liquidation risk. A move above $3,470 would invalidate the hidden bearish divergence and could clear the densest long-liquidation cluster, potentially opening the way to $3,910 and $4,250, while a drop below $2,850 would weaken the reversal thesis, leaving the breakout fragile.

Key Topics

Crypto, Ethereum, Rsi, Binance, Whales, Derivatives