Ethereum consolidates above 200-day EMA at $2,457 while forming bullish reversal pattern. Rounding-bottom formation spans February to May with neckline at $2,712 resistance. Open interest rises 2.52% to $34.65 billion despite RSI showing weakening momentum. Ethereum is developing a bullish cup-and-handle pattern on its daily chart while maintaining support above the 200-day exponential moving average at $2,457. Currently trading around $2,509, ETH continues consolidating within a defined range as traders watch for potential breakout signals above key resistance levels. The cup formation has taken shape between February and May, creating a rounding-bottom reversal pattern with the neckline positioned at the 61.80% Fibonacci level of $2,712. This technical setup suggests Ethereum could be preparing for an extended rally if bulls can push price action above the pattern’s upper boundary. Supporting the bullish case, Ethereum has achieved a golden cross between the 50-day and 100-day EMA lines, indicating potential short-term trend reversal. This crossover typically attracts momentum traders and provides additional technical confirmation for the developing pattern. Ethereum RSI divergence creates near-term concerns Despite the bullish chart formation, Ethereum faces some technical headwinds. The RSI indicator continues declining while price maintains higher lows, creating a hidden bearish divergence that suggests weakening momentum beneath the surface. This divergence pattern often precedes short-term pullbacks or consolidation periods, even within broader bullish structures. If the divergence plays out, ETH could test support at the 50% Fibonacci level around $2,386, followed by the 38.20% level at $2,098. However, if broader market conditions improve and buying pressure increases, a bullish breakout from the cup-and-handle pattern remains possible. Such a move would target the 78.60% Fibonacci level at $3,255, providing approximately 30% upside from current levels. More optimistic scenarios see a confirmed breakout extending toward the 100% Fibonacci level at $4,108, though this would require sustained momentum and broader crypto market strength. The funding rate has risen to 0.0046%, suggesting traders are willing to pay slight premiums to maintain long positions. This elevated funding rate, while not extreme, indicates more bullish than bearish positioning among perpetual contract traders.