Ethereum Bulls Might Fail Because of This Critical Reversal
Despite a recent bullish breakout, Ethereum's momentum is weakening due to a bearish divergence and significant whale selling activity.Summary
Ethereum recently broke out of a bullish triangle pattern, suggesting potential upside, but this breakout is now vulnerable due to a nearly three-week bearish divergence shown by the Chaikin Money Flow (CMF) indicator, which suggests price increases are occurring alongside capital outflows.
This divergence indicates that crucial Ethereum holders, specifically whales holding 100,000 to 1 million ETH, have increased selling activity, distributing over 230,000 ETH (approximately $760 million) into the recent price strength. This major capital exit erodes upside conviction.
Currently trading near $3,309, ETH is testing the $3,287 support level. If this support fails, the price could drop to $3,131, confirming the breakout as a fakeout and potentially leading to a correction below $3,000. However, if ETH holds $3,287 and whale selling subsides, bulls could regain control, targeting resistance levels like $3,441 or $3,802.
(Source：BeInCrypto)