Key Takeaways:
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Ethereum’s triple bottom pattern near $3,750-$3,800 suggests a possible 10% rally in October.
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Mega whales (10,000-100,000 ETH) are quietly accumulating and absorbing supply from smaller holders throughout the recent price decline.
Ethereum's native token, Ether (ETH), is pointing to a textbook bearish reversal setup after falling 6.50% up to now in October.
The triple bottom revives ETH’s $4,000 potential
Since Thursday, Ether's 4-hour chart has shown a triple bottom, a setup that forms when prices reach the identical support level 3 times and fail to interrupt lower every time.
For ETH, this support lies around $3,750-$3,800, with buyers consistently stepping in to defend the value. Each “trough” shows sellers losing strength while buyers quietly gain momentum.
ETH/USDT four-hour chart. Source: TradingView
Now Ethereum faces a key hurdle at its neckline resistance near $3,950-$4,000. This area also coincides with the 50-period exponential moving average (50-period EMA, represented by the red wave).
The triple bottom pattern would confirm whether Ethereum breaks the neck line decisively. This could allow ETH to rise toward its potential price goal of around $4,280 by October or early November, a ten% increase from current levels.
During the formation of the pattern, which is typical before a breakout, trading volumes have slowly declined. A noticeable increase in buying volume alongside the breakout will confirm the triple bottom setup.
The bullish reversal setup is consistent with trader Kamran Asghar's evaluation, although he points to the $4,800-$5,000 area because the foremost resistance area.
Mega whales absorb ETH from smaller fish
On-chain data from Glassnode shows that there was a major restructuring of Ethereum ownership throughout the recent price decline.
Large wallets holding 10,000-100,000 ETH, sometimes called “mega whales,” have been accumulating quietly and on the fastest pace in years, now controlling nearly 28 million ETH.
At the identical time, smaller whales' holdings of 1,000-10,000 ETH fell sharply, especially last month during Ether's price correction.
This suggests that when prices fell, some medium-sized holders either sold into the downtrend, with their coins being absorbed by larger investors, or bought more ETH, pushing themselves into the larger cohort.
This article doesn’t contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their very own research when making their decision.
