Yesterday’s price action indicates that Ethereum (ETH) may be forming a bullish reversal pattern after a recent dip, sparking speculation that the cryptocurrency might rebound towards the $4,000 mark in the coming weeks. As Bitcoin and other major assets experience fluctuations, ETH’s technical signals and shifting on-chain holdings suggest strengthening investor confidence among major whales, potentially setting the stage for a sustained recovery.
Ethereum’s native token, Ether (ETH), has been trading in a technical pattern resembling a bullish turnaround after falling approximately 6.50% so far in October. Market analysts are closely watching for signs of a trend reversal, especially given the pattern’s implications for a potential rally.
Triple Bottom Rekindles ETH’s $4,000 Potential
On Thursday, ETH’s 4-hour chart revealed a classic triple bottom, a pattern that develops when the price tests the same support level roughly three times without breaking lower. This support zone hovers around $3,750–$3,800, where consistent buying has prevented further declines. Each attempt to push lower has weakened sellers, indicating a possible shift in momentum towards buyers.
The critical resistance level lies just above at $3,950–$4,000, aligning with the 50-period exponential moving average (EMA). A decisive move above this level would confirm the triple bottom pattern and could propel ETH toward a target of around $4,280—a roughly 10% increase from current levels—by early November.
As trading volume has tapered off during this formation, a subsequent surge in buying activity would serve as confirmation of the bullish pattern. Notably, trader Kamran Asghar’s recent analysis highlights the $4,800–$5,000 area as the main resistance zone, which could pose a challenge if price momentum accelerates.
Mega-Whales Absorb ETH from Smaller Holders
On-chain data from Glassnode reveals a significant redistribution of ETH supply during the recent downturn. Large wallets—those holding between 10,000 and 100,000 ETH—have been quietly accumulating over the past few weeks, now holding close to 28 million ETH in total. This trend signals substantial interest from institutional-sized investors or “mega whales.”
During the same period, mid-sized holders with 1,000–10,000 ETH experienced notable declines, especially amid the recent price correction. This suggests either that these holders sold into the dip or increased their positions, transferring coins into the larger whale category.
This reshuffle highlights a pattern where major investors are quietly accumulating ETH, potentially signaling confidence in Ethereum’s long-term prospects and a foundation for future price appreciation in the evolving crypto markets.
This article is for informational purposes only and should not be considered investment advice. All trading involves risks, and readers are encouraged to conduct their own research before making any financial decisions.