Ethereum price is showing early signs of a potential macro bottom, with price action forming an Adam and Eve reversal pattern that could trigger a rally if key resistance is reclaimed.

Ethereum (ETH) price action is beginning to show characteristics commonly associated with bottoming formations as the market stabilizes after a prolonged corrective phase.

Following a sharp sell-off, ETH has produced a strong initial rebound and is now consolidating near key value levels. This behavior aligns closely with an Adam and Eve reversal pattern, a structure that often signals a transition from bearish control to early accumulation.

While the broader trend remains cautious, the developing structure suggests that downside momentum may be exhausting. If confirmed, this setup could mark the early stages of a trend reversal and open the door for a meaningful recovery toward higher resistance levels.

Ethereum price key technical points

• Adam and Eve bottoming pattern is developing, signaling a potential trend reversal
• Point of control acts as the activation level, required for confirmation
• Upside target sits near $2,450, aligned with high-timeframe resistance

The first phase of the Adam and Eve pattern, known as the “Adam” leg, is characterized by a sharp and impulsive move off the lows. Ethereum established a notable swing low around $1,740, followed by a strong rally that reflected aggressive short-covering and early-dip buying.

This sharp rebound typically indicates capitulation exhaustion rather than a sustainable trend continuation. In Adam and Eve structures, the Adam leg serves as the initial signal that selling pressure is beginning to fade, even if price has not yet transitioned into a full bullish trend.

Rounded base signals the ‘Eve’ Formation

Following the initial rebound, Ethereum has entered a slower, more rounded consolidation near the value area low. This price behavior forms the “Eve” portion of the pattern, where the market begins absorbing supply and building a base.

Unlike the sharp Adam leg, the Eve structure develops gradually, reflecting increasing balance between buyers and sellers. This phase is critical, as it allows the market to establish higher lows and build the foundation required for a sustainable move higher.

The fact that price is holding above the initial swing low suggests that sellers are losing dominance and that demand is beginning to stabilize near current levels.

Point of control is the key trigger

For the Adam and Eve pattern to be activated, Ethereum must reclaim the point of control on a closing basis. The point of control represents the price level with the highest traded volume and often acts as a pivot between bearish and bullish regimes.

A decisive reclaim of this level, particularly if backed by strong bullish volume, would confirm acceptance at higher prices and activate the reversal structure. Without this confirmation, the pattern remains speculative and vulnerable to further consolidation or downside retests.

Upside targets and reversal implications

If the pattern confirms, Ethereum’s next major upside objective sits near the $2,450 level, which aligns with high-timeframe resistance. A rally toward this region would represent a significant recovery from the recent lows and validate the broader bottoming thesis.

However, it is important to note that Adam and Eve reversals often unfold over time. Initial breakouts can be volatile, with pullbacks and retests common before sustained continuation occurs.

What to expect in the coming price action

From a technical, price action, and market structure perspective, Ethereum appears to be in the early stages of a potential bottoming process. As long as price holds above the recent swing low near $1,740, the Adam and Eve pattern remains valid.

Confirmation will depend on Ethereum’s ability to reclaim the point of control with expanding bullish volume. If that occurs, a rotational move toward $2,450 becomes increasingly probable.

Anchorage Digital has partnered with Kamino and Solana Company to roll out a structure that allows institutions to borrow against staked Solana without moving assets out of regulated custody, potentially addressing a key friction between traditional finance and decentralized lending markets.

In a Friday announcement, Anchorage said the initiative expands its Atlas collateral management platform by integrating with Kamino, a Solana-based decentralized lending protocol.

The effort is being carried out in collaboration with Solana Company, a publicly traded Solana (SOL) treasury created in partnership with Pantera Capital and Summer Capital. 

Under the structure, institutions can use natively staked SOL as collateral for onchain borrowing while the assets remain held at Anchorage Digital Bank, a federally chartered crypto bank. That means investors can continue earning staking rewards while accessing liquidity through Kamino’s lending markets.

Anchorage acts as collateral manager, overseeing loan-to-value ratios, margin requirements and, if necessary, liquidations. Because the collateral remains in segregated custody, institutions do not need to move assets into smart contracts, a requirement that has historically limited participation by regulated entities.

Related: Solana treasuries sitting on over $1.5B in paper SOL losses

DeFi legislation hangs in the balance

The integration between Anchorage Digital, Kamino and Solana Company underscores growing institutional interest in decentralized finance. However, that momentum is unfolding against an uncertain regulatory backdrop in the United States, where lawmakers are still debating how to oversee digital assets and DeFi platforms.

At the center of the debate is the proposed CLARITY Act, which aims to establish clearer jurisdictional boundaries and regulatory standards for digital assets, including DeFi protocols. 

While the bill is intended to reduce uncertainty for market participants, some DeFi advocates argue that it falls short of addressing how decentralized protocols, developers and governance structures should be treated under the law.

Industry groups have raised concerns that earlier draft language, including amendments introduced in January, does not sufficiently distinguish between centralized intermediaries and decentralized systems.

Amid the deadlock over the CLARITY Act’s future, the Trump administration convened a meeting with industry representatives earlier this month to break the impasse and gather feedback on outstanding provisions related to DeFi oversight and market structure.

Related: Who gets the yield? CLARITY Act becomes fight over onchain dollars