The cryptocurrency market has been buzzing with activity, particularly around Ethereum (ETH) and several altcoins, following a notable bullish divergence signal identified three weeks ago. As highlighted by prominent crypto analyst Michael van de Poppe on May 10, 2025, the bullish divergence on ETH hinted at a potential reversal in its price trend. This prediction materialized with a confirmed higher low, followed by a significant breakout in ETH’s price. On May 10, 2025, at approximately 10:00 AM UTC, ETH surged past the $3,200 resistance level on major exchanges like Binance, marking a 5.2% increase within 24 hours, according to data from CoinMarketCap. Trading volume for ETH spiked by 38% during this period, reaching $18.5 billion across spot markets. This breakout aligns with a clear trend switch, as noted by the analyst, shifting market sentiment from bearish to bullish. Meanwhile, the daily bullish divergence on ETH continues to signal strength, with the price testing new highs near $3,350 by May 11, 2025, at 2:00 PM UTC. This momentum isn’t isolated to ETH alone; multiple altcoins are also showing weekly bullish divergences, suggesting a broader market recovery. For instance, Cardano (ADA) and Solana (SOL) recorded price increases of 4.8% and 6.1%, respectively, between May 9 and May 11, 2025, based on live market data from CoinGecko. This synchronized bullish behavior across altcoins indicates a potential altseason, a period where altcoins often outperform Bitcoin (BTC). Investors searching for Ethereum price analysis or altcoin breakout signals will find this development crucial for timing entries and exits in the volatile crypto market.

From a trading perspective, the implications of this bullish divergence are significant for both short-term and long-term strategies. The breakout in ETH, confirmed on May 10, 2025, opens up opportunities for traders to capitalize on momentum plays. For instance, the ETH/USDT trading pair on Binance saw a 24-hour volume surge to $6.2 billion by May 11, 2025, at 8:00 AM UTC, reflecting heightened trader interest. Scalpers and swing traders could target resistance levels near $3,400, with support established at $3,150 based on recent candlestick patterns. Simultaneously, altcoins like SOL and ADA present cross-market trading opportunities, as their weekly divergences suggest potential for further upside. SOL/BTC, for example, gained 3.5% over the past 48 hours as of May 11, 2025, at 12:00 PM UTC, per TradingView data. This indicates relative strength against Bitcoin, which only rose by 1.8% in the same timeframe. For investors, this correlation between ETH and altcoins highlights a risk-on sentiment in the crypto market, likely driven by positive macroeconomic cues such as declining U.S. Treasury yields reported on May 9, 2025, by Bloomberg. Lower yields often push institutional capital into riskier assets like cryptocurrencies, amplifying volume and price action. Traders focusing on altcoin trading strategies or Ethereum breakout patterns should monitor these macroeconomic triggers closely for sustained momentum.

Diving into technical indicators, the Relative Strength Index (RSI) for ETH on the daily chart moved from 55 to 68 between May 9 and May 11, 2025, signaling growing bullish momentum without entering overbought territory, as observed on TradingView at 3:00 PM UTC on May 11. The Moving Average Convergence Divergence (MACD) also flipped bullish on May 10, 2025, with the signal line crossing above the MACD line, confirming the trend switch noted by Michael van de Poppe. On-chain metrics further support this outlook; Ethereum’s network activity, measured by daily active addresses, increased by 12% to 520,000 on May 10, 2025, according to Glassnode data. For altcoins like SOL, the RSI on the weekly chart stands at 62 as of May 11, 2025, at 4:00 PM UTC, indicating room for further gains. Trading volume for SOL/USDT on Binance reached $2.1 billion in the last 24 hours by May 11, 2025, a 25% increase from the prior day. These indicators, combined with bullish divergences, suggest a strong setup for momentum trading. Additionally, the correlation between ETH and altcoins remains high, with a 0.85 correlation coefficient against BTC over the past week, per CoinMetrics data accessed on May 11, 2025. This tight relationship implies that a continued rally in ETH could lift altcoins further, offering diversified trading opportunities.

Lastly, while this analysis focuses on crypto-specific trends, it’s worth noting the indirect influence of stock market sentiment on crypto assets. On May 9, 2025, the S&P 500 gained 0.7%, reflecting a risk-on environment that often spills over into cryptocurrencies, as reported by Reuters. Institutional money flow, evidenced by a $200 million inflow into crypto funds on May 10, 2025, per CoinShares, underscores this cross-market dynamic. For traders eyeing Ethereum trading signals or altcoin investment opportunities, understanding these correlations and capital movements is essential for managing risk and maximizing returns in this bullish phase.

FAQ Section:
What does the bullish divergence on Ethereum mean for traders?
A bullish divergence, as seen on ETH three weeks prior to May 10, 2025, indicates a potential price reversal from a downtrend to an uptrend. It suggests that while prices were making lower lows, momentum indicators like RSI were showing higher lows, signaling weakening bearish pressure. For traders, this is a cue to look for entry points, as confirmed by ETH’s breakout past $3,200 on May 10, 2025, at 10:00 AM UTC.

Which altcoins are showing weekly bullish divergences?
According to market analysis shared by Michael van de Poppe on May 10, 2025, multiple altcoins are displaying weekly bullish divergences. Specific examples include Cardano (ADA) and Solana (SOL), which saw price gains of 4.8% and 6.1%, respectively, between May 9 and May 11, 2025, as per CoinGecko data. These divergences suggest potential for further upside, making them attractive for swing trades or long-term holds.