Key Takeaways:
- Ether’s price chart shows a “Power of 3” setup, with a price target above $5,000.
- Spot ETH ETFs recorded net inflows of 106,000 Ether last week, marking the seventh consecutive week of positive inflows.
- ETH still faces a potential 25% correction as increasing whale exchange inflows and short positions surge.
Ether’s (ETH) price chart displays a “Power of 3” setup following a recent trend deviation around $2,100-2,200, which occurred after a consolidation period between May 9 and June 20.
Ether’s “Power of 3” Rally Path
The “Power of 3,” or “AMD” model (Accumulation, Manipulation, Distribution), describes institutional trading patterns near key liquidity zones.
Accumulation (May 9-June 20): Quiet price consolidation occurred, allowing investors to establish positions with low volatility.
Manipulation (Last week): A brief breakdown below $2,200 triggered buying following seller panic, drawing institutional interest as spot ETFs saw net inflows of 106,000 ETH, extending the seventh-week trend.
Distribution: The pattern now signals an upside move targeting $5,000+, mirroring Ether’s 2016-2017 rally. Thomas Lee of Bitmine described this as a “most hated rally.”
The Power of 3 pattern mirrors Ether’s 2016–2017 rally. Thomas Lee, head of Bitmine, highlighted this fractal and suggested ETH could be on the verge of its “most hated rally,” a surge driven by institutional investors and market structure.
Bearish Outlook Emerges
Ethereum risks a 25% price drop as ‘massive whale’ moves $237M in ETH to exchanges
Ethereum faces a contrasting bearish technical scenario, including a failure to break above long-standing resistance and penetration below a multi-year symmetrical triangle on the two-week chart.
A notable whale recently moved approximately $237 million in ETH from staking to exchanges. Over 62,000 ETH crossed onto Binance within five days, signaling increasing selling pressure.
Technical signals also point downward: Declining spot volume coincides with negative funding rates and rising open interest during price declines, potentially buying time for short squeezes as liquidity evaporates near the $2,275-$2,350 area.
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.
