In a time when Bitcoin is facing significant bearish pressure, Ethereum is also experiencing a prolonged period of bearish activity. The price of Ethereum has been dropping sharply compared to Bitcoin, leading to concerns about future price movements. Despite this, there is a hidden bullish divergence in the Ethereum price, indicating that a strong upward trend may be on the horizon.
Whales in the crypto market have been particularly active during this period of market downturn. As the overall market capitalization struggles to stay above $2.6 trillion, whales have been accumulating Ethereum at a rapid pace. Reports suggest that whale accumulation has reached its peak, with some whales holding close to 2000 ETH. Notably, this level of accumulation is reminiscent of previous periods when the price of Ethereum surged to new highs.
Looking back to 2017, addresses holding between 10K and 100K ETH began accumulating the token, leading to a price rally. A similar accumulation pattern was observed in July 2020, preceding the 2021 bull run. The recent spike in whale accumulation indicates the potential for another bull run in the near future.
In terms of price analysis, Ethereum has been experiencing increased volatility since the beginning of 2024. The price has repeatedly tested the $4000 mark but has been unable to break through due to bearish pressure. With the recent loss of crucial support levels, the Ethereum price is at risk of further downside movement.
The weekly price charts show a Doji candle forming, signaling a potential major price movement in the near future. The supertrend indicator has turned bearish, indicating ongoing downward pressure on the price. However, the weekly RSI is approaching oversold levels, suggesting a potential rebound in the price.
As Ethereum continues to trade in a critical phase, the upcoming weekly close could have a significant impact on future price movements. Traders and investors should closely monitor these technical indicators to gauge the direction of the Ethereum price in the coming weeks.