Ethereum's Bullish Run Faces Challenges Amid Trend Reversal Signals

Ethereum's Bullish Breakout Under Scrutiny

Ethereum recently emerged from a bullish triangle pattern, indicating potential upward momentum. However, this optimism is being tested as a bearish divergence has surfaced over the past three weeks, casting doubts on the breakout's strength.

Whales Show Hesitation

Ethereum is experiencing a notable bearish divergence, pointing to weakening internal strength. Despite higher price peaks, the Chaikin Money Flow indicator reflects rising capital outflows. This suggests investors are distributing ETH instead of accumulating, potentially leading to a trend reversal. Investors appear cautious amidst a broader uncertain crypto environment.

Whale Activity and Market Impact

Macro data supports the bearish signals, with Ethereum whales intensifying their selling activity. Wallets holding between 100,000 and 1 million ETH offloaded over 230,000 ETH recently, equating to approximately $760 million at current prices. This aligns with declining CMF, confirming reduced confidence among major holders and weakening the breakout's sustainability.

Potential Price Decline for ETH

Ethereum's price currently hovers around $3,309, maintaining just above the $3,287 support level. The recent triangle breakout suggested a 29.5% upside potential to $4,240. However, diminishing momentum and bearish divergence threaten this bullish outlook. If the $3,287 support fails, ETH could face a decline towards $3,131, suggesting a fakeout and possibly deeper correction below $3,000.

Conversely, if ETH rebounds from $3,287 and whale selling decreases, bullish momentum may resurface. Holding this support could push Ethereum towards $3,441, with further gains potentially reaching $3,802, counteracting the bearish scenario.