Ethereum's price has dipped less than 1% in the past day, showing quiet trading on the surface, but on-chain data reveals large investors accumulating amid weakening retail interest. An inverse head-and-shoulders pattern suggests a potential bullish reversal if the price surpasses $3,390. Key indicators like RSI point to fading selling pressure, tilting momentum toward whales.
The Ethereum price sits near critical levels, down under 1% over the last 24 hours, with the chart appearing subdued at first glance. This minor decline ties to softening retail demand, as evidenced by the Money Flow Index (MFI), which formed a lower low between December 18 and December 24 despite the price trending higher. For stronger buying signals, the MFI must climb above 37 to create a higher high.
In contrast, large holders, or whales, have ramped up activity. Since December 26, the amount of ETH in whale wallets increased from 100.48 million to 100.6 million, injecting roughly $350 million at current prices. These investors typically accumulate for longer-term setups rather than quick trades, highlighting their confidence in the current market structure.
Supporting this whale positioning is the Relative Strength Index (RSI), which showed a bullish divergence from November 4 to December 25: the price hit a lower low, but the RSI formed a higher low, indicating waning selling momentum. This divergence bolsters the emerging inverse head-and-shoulders pattern, a bullish reversal signal that could activate if Ethereum breaks above the neckline at $3,390.
To reach that point, the price first needs to reclaim $3,050, a short-term resistance and psychological level. A successful breakout could propel Ethereum toward $4,400, calculated by adding the pattern's head height to the breakout point. However, downside risks persist: falling below $2,800 could erode bullish momentum, potentially leading to $2,620 and invalidating the reversal setup. The outcome hinges on whether retail joins the whales or if hesitation persists.
