Ethereum’s recent price movements have been intriguing, particularly following Donald Trump’s election. ETH has experienced a 40% increase, but this upward trend appears to be a process of fund absorption and position building rather than a typical rally.
Why This Rise Differs from a Traditional Pull-Up
Gradual Gains: Unlike a typical rally characterized by sharp price increases and large bullish candlesticks with high trading volume, this 40% rise has been marked by a series of smaller positive candlesticks with relatively even volume.
Chip Accumulation: The consistent nature of the increase suggests a deliberate effort to prevent others from acquiring significant positions, likely reflecting strategic accumulation by institutional investors.
This behavior coincided with the continuous inflow of funds into BlackRock’s Ethereum ETF, indicating that Wall Street players may be behind this wave of position building.
The Recent 10% Pullback: A Controlled Wash-Out
Volume Analysis: Following the rise, ETH experienced a 10% correction, accompanied by a noticeable decrease in trading volume.
Support at $3,000: Ethereum tested the $3,000 support level multiple times without breaking below it, even during high-pressure sell-offs. This morning’s price action, which held steady despite significant downward pressure, suggests the pullback was a controlled wash-out designed to shake out weaker hands.
What’s Next for Ethereum?
Chips Consolidated: The recent wash-out appears to have successfully consolidated chips, leaving the market poised for a substantial move upward.
Anticipated Breakout: The next phase is likely to be a genuine rally led by a sharp increase in volume and a strong bullish candlestick.
Altcoin Season Potential: As Ethereum gains momentum, it could act as a catalyst for the broader altcoin market, signaling the start of the long-awaited altcoin season.
Conclusion
Ethereum’s recent trend points to strategic accumulation and preparation for a significant rally. Traders should remain patient, watch for an increase in volume, and prepare for potential opportunities as Ethereum leads the next market phase. The resilience of the $3,000 support level and the controlled nature of the recent correction further strengthen the case for an impending bullish breakout.