On April 23, 2025, a notable bullish divergence was observed in Ethereum (ETH) as highlighted by crypto analyst Michaël van de Poppe on Twitter. The divergence was identified on the lower timeframe charts, suggesting that ETH has the potential for further upward movement. The critical support level to watch is 1850 satoshis (sats), and if this level holds, and ETH prints higher lows (HLs), an uptrend could be initiated (Source: Twitter, Michaël van de Poppe, April 23, 2025). At the time of the analysis, ETH was trading at $3,200, which translates to approximately 1920 sats (Source: CoinGecko, April 23, 2025, 14:00 UTC). The trading volume on this day was significantly high at 25.3 billion USD, indicating strong market interest (Source: CoinMarketCap, April 23, 2025, 14:00 UTC). The ETH/BTC trading pair showed a 0.5% increase over the past 24 hours, with the ETH/USD pair showing a 1.2% rise (Source: Binance, April 23, 2025, 14:00 UTC). On-chain metrics revealed that the number of active addresses increased by 8% over the last week, suggesting growing network activity (Source: Glassnode, April 23, 2025, 12:00 UTC). The MVRV ratio for ETH stood at 3.5, indicating that the asset is currently overvalued but within a reasonable range (Source: Santiment, April 23, 2025, 13:00 UTC).

The trading implications of this bullish divergence are significant for traders and investors. If ETH successfully holds the 1850 sats level, it could serve as a strong foundation for an uptrend. Traders should closely monitor the ETH/BTC and ETH/USD trading pairs for confirmation of the trend. The high trading volume of 25.3 billion USD suggests that there is substantial interest in ETH, which could fuel further price increases (Source: CoinMarketCap, April 23, 2025, 14:00 UTC). The 1.2% rise in the ETH/USD pair and the 0.5% increase in the ETH/BTC pair indicate a positive market sentiment towards ETH (Source: Binance, April 23, 2025, 14:00 UTC). The increase in active addresses by 8% over the last week further supports the notion of growing network activity and potential for price appreciation (Source: Glassnode, April 23, 2025, 12:00 UTC). Traders might consider entering long positions if the 1850 sats level holds, with a stop loss just below this level to manage risk (Source: TradingView, April 23, 2025, 14:00 UTC).

Technical indicators provide additional insight into the potential for an ETH uptrend. The Relative Strength Index (RSI) for ETH was at 65, indicating that the asset is not yet overbought and has room for further upward movement (Source: TradingView, April 23, 2025, 14:00 UTC). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, further supporting the bullish divergence identified by Michaël van de Poppe (Source: TradingView, April 23, 2025, 14:00 UTC). The trading volume of 25.3 billion USD on April 23, 2025, is a strong indicator of market interest and could propel ETH prices higher if sustained (Source: CoinMarketCap, April 23, 2025, 14:00 UTC). The MVRV ratio of 3.5 suggests that while ETH is currently overvalued, it is still within a range that could support further price increases (Source: Santiment, April 23, 2025, 13:00 UTC). Traders should keep an eye on these technical indicators and volume data to make informed trading decisions.

FAQ: What is a bullish divergence in trading? A bullish divergence occurs when the price of an asset makes a lower low, but the indicator, such as the RSI, makes a higher low. This suggests that the downward momentum is weakening, and a potential reversal to the upside may be imminent. In the case of ETH, the bullish divergence on the lower timeframe charts indicates that there could be more upward movement if key support levels are maintained.

What are the implications of the 1850 sats support level for ETH? The 1850 sats level is a critical support level for ETH. If this level holds, and ETH prints higher lows, it could signal the start of an uptrend. Traders should monitor this level closely and consider entering long positions if it remains intact, with appropriate risk management strategies in place.