The price of Ethereum has dropped by less than 1% in the last twenty-four hours. At first glance, the chart looks calm. Also, the slight drop in prices is associated with weak retail demand. But there is something else happening beneath the surface.
New on-chain data shows that whales are adding again, while a key indicator shows a rare change in direction, leaning towards one of the two groups mentioned in this article.
Retail sector slowed while whales moved.
Ethereum is nearing the completion of an inverse head and shoulders pattern. This bullish structure indicates a trend reversal if the price breaks above $3,390. The issue arises before that breakout level. Weak momentum in the retail sector this week.
Between December 18 and 24, the price trended upwards. Typically, this is a positive sign. The Money Flow Index (MFI), which tracks money entering and exiting the asset, did not follow. It was making a lower low. This indicates that individual traders may not have supported the higher low through actual buying.
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The MFI market now needs to surpass 37 to form a higher high and show stronger demand.
While retail trading slowed, whales interacted in an opposite manner. Since December 26, wallets holding large amounts moved from 100.48 million ETH to 100.6 million ETH.
At the current price, this amount is about $350 million pumped in the last twenty-four hours. Whales do not buy for short-term jumps. They usually buy because they believe there is an existing arrangement.
This division defines the current situation. The seller is hesitant in the market. Whales are entering. The next price movement of ETH depends on the group that remains stable.
One indicator leans towards the whales.
The Relative Strength Index (RSI), an indicator of momentum, supports the positioning of whales.
Between November 4 and December 25:
The price hit a low.
RSI hit a higher low.
This is a bullish divergence. It indicates that selling pressure is losing strength, although the price has not confirmed this yet.
This type of divergence supports reversal patterns like the inverse head and shoulders. This does not guarantee a breakout from the team. It gives the breakout attempt a higher chance of success if the price reaches the trigger zone. This is exactly why Ethereum whales are adding now.
Ethereum price zones define the next phase.
The price of Ethereum must first recover to $3,050. This is a barrier and short-term resistance.
If the price strongly exceeds the result, the next test is the neckline breakout area at $3,390.
A breakout above $3,390 could trigger an inverse head and shoulders target near $4,400. This comes from adding the height of the head to the breakout point.
On the bearish side, a loss of $2,800 weakens bullish momentum. If selling increases and whales stop adding, the price of Ethereum could drop to $2,620. A drop below this level invalidates the bullish reversal structure.
