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Ethereum price recently recorded a breakout of an ascending triangle pattern, indicating renewed bullish momentum.
However, this discovery now seems vulnerable. ETH has registered a bearish divergence for almost three weeks, raising concerns that the move lacks conviction.
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The main holders of Ethereum are decreasing
Ethereum has shown a clear bearish divergence over the past three weeks, indicating weak internal strength. While the price of eth continued to record higher highs, the Chaikin Money Flow indicator recorded lower lows. This model suggests that the price increase occurred with the increase in the flow of capital rather than sustained inflows.
Such divergence often precedes a trend reversal. Investors seem to be doing just that Distributing eth when strong Instead of accumulating. When capital exits the market during price expansion, the upward momentum erodes. This dynamic increases the likelihood of hacking, especially in a broad, conservative cryptocurrency environment.
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Economic data generally shows support for the bearish signal seen in momentum indicators. I lost Ethereum whales have increased sales activity During the last week. Wallets holding between 100,000 and 1 million eth sold more than 230,000 eth, according to on-chain data.
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This selling pressure equates to about $760 million at current prices. The large portfolio flows are in line with the decrease in CMF, confirming the decrease in the confidence of the elderly. When whales sell on breakouts, price sustainability weakens, increasing the likelihood of further downside in the near term.
The price of ETH may face a decline
The price of Ethereum is trading near $3,309 at the time of writing this article, just above the support at $3,287. The recent formation of the triangle showed an upward move of 29.5%, targeting $4,240. However, fading momentum and negative divergence threaten to negate this bullish structure.
Given the current conditions, beincrypto suggests that eth will likely lose the $3,287 support. A drop below this level would send the price towards the $3,131 level, confirming that the move was false. Such a rejection would increase selling pressure and indicate that a deeper correction below $3,000 may follow.
However, the decline remains uncertain. beincrypto reported that if eth manages to bounce back from $3,287 and whale selling eases, the bullish momentum could return.
Holding this support could allow Ethereum to push towards $3,441. The added strength could extend gains towards $3,802, negating the negative outlook.
