Key takeaways:
Ethereum’s triple bottom pattern near $3,750–$3,800 hints at a potential 10% rebound in October.
Mega whales (10,000–100,000 ETH) are quietly accumulating, absorbing supply from smaller holders during the recent price decline.
Ethereum’s native token, Ether (ETH), is hinting at a textbook bearish reversal setup after dropping 6.50% so far in October.
Triple bottom rekindles ETH’s $4,000 potential
As of Thursday, Ether’s 4-hour chart shows a triple bottom, a setup that forms when prices hit the same support level three times and fail to break lower each time.
For ETH, that support sits around $3,750–$3,800, where buyers have consistently stepped in to defend the price. Each “bottom” shows sellers losing strength, while buyers quietly build momentum.
Now, Ethereum faces a key hurdle at its neckline resistance near $3,950–$4,000. This area also aligns with the 50-period exponential moving average (50-period EMA, represented by the red wave).
The triple bottom pattern would confirm if Ethereum breaks decisively above the neckline. Doing so may enable ETH to rise toward its potential price target of around $4,280, a 10% increase from current levels, by October or early November.
Related: Ethereum fails again above $4K as traders grow frustrated with shakeouts
Trading volumes have been slowly declining during the pattern’s formation, which is typical before a breakout. A noticeable spike in buying volume alongside the breakout will confirm the triple bottom setup.
The bullish reversal setup aligns with trader Kamran Asghar’s analysis, although he presents the $4,800-$ 5,000 area as the main resistance area.
Mega-whales absorb ETH from smaller fish
Onchain data from Glassnode shows a significant reshuffle in Ethereum’s ownership during the recent price decline.
Large wallets holding 10,000–100,000 ETH, often called “mega whales,” have been quietly accumulating at the fastest pace in years, now controlling close to 28 million ETH.
At the same time, smaller whales with 1,000–10,000 ETH saw their balances drop sharply, especially in the past month during Ether’s price correction.
This suggests that as prices fell, some mid-sized holders either sold into the dip, with their coins being absorbed by larger investors, or bought more ETH, pushing themselves into the bigger cohort.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
