Main takeaways:
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Ethereum’s triple bottom pattern near $3,750 to $3,800 indicates a potential 10% rebound in October.
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Huge whales (10,000-100,000 ETH) have been quietly accumulating, absorbing supply from smallholders during the recent price decline.
Ethereum’s native token, Ether (ETH), is indicating a bearish reversal setup after falling 6.50% so far in October.
Triple bottom revives ETH’s $4,000 potential
As of Thursday, the 4-hour chart of Ether shows a triple bottom, a setup that forms when prices reach the same support level three times and fail to break down each time.
For ETH, this support ranges between $3,750 and $3,800, where buyers are constantly stepping in to defend the price. Each “bottom” shows that sellers are losing ground, while buyers are quietly building momentum.
Now, Ethereum faces a major hurdle of neckline resistance near $3,950-$4,000. This area also corresponds to the 50-period Exponential Moving Average (50-period EMA, represented by the red wave).
The triple bottom pattern will confirm if Ethereum decisively breaks above the neckline. Doing so could enable ETH to rally towards a potential target price of around $4,280, an increase of 10% from current levels, by October or early November.
Related to: Ethereum failed back above $4K with traders frustrated by the tremors
Trading volumes were slowly declining during the formation of the pattern, which is typical before a breakout. A notable rise in buying volume combined with a breakout will confirm the triple bottom setup.
The bullish reversal setup is in line with trader Kamran Asghar’s analysis, although it presents the $4,800-$5,000 area as a key resistance area.
Huge whales suck Ethereum from small fish
Onchain data from Glassnode shows a significant adjustment in Ether ownership during the recent price decline.
Large wallets holding between 10,000 and 100,000 ETH, often called “mega-whales,” have been quietly accumulating at the fastest pace in years, now controlling nearly 28 million ETH.
Meanwhile, smaller whales priced between 1,000 and 10,000 ETH saw their balances decline sharply, especially in the past month during the ETH price correction.
This suggests that as prices fell, some mid-sized coin holders either sold on the dip, with larger investors absorbing their coins, or bought more Ethereum, pushing themselves into the larger pool.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.