3 Bullish Signals on Ethereum (ETH) This Week

Has Ethereum Trapped the Bears ? 3 Signals That Suggest It Has

Despite a recent drop of more than 8% in Ethereum price, on-chain data and trader behavior indicate that savvy investors might have set a trap for bears. Let’s look at 3 revealing bullish signals.

Whales and Small Holders Align on a Bullish Trend

The first encouraging sign is the concentration of holdings on the Ethereum network. Over the past 30 days, whale holdings have increased by 1.82%, while retail wallets (small investors) have boosted their exposure by 1.87%. Typically, whale movements eventually outweigh those of mid-sized investors and retail traders due to their transaction volume.

However, this time it appears that small holders are following Ethereum whales, potentially leaving mid-sized investors in a sort of trap. Interestingly, these mid-sized investors have actually reduced their holdings, suggesting a redistribution toward the extremes – whales and retail traders – two groups known for having very different motivations, but who seem to share the same optimism here.

Traders Display a Net Bullish Position

Despite numerous sideways fluctuations and frequent dips, traders have not yet shifted to a bearish sentiment. According to the long/short account ratio on Binance, Ethereum’s current metric stands at 1.91, meaning there are nearly twice as many long accounts as short accounts.

This data, observed over the last 24 hours, suggests that many traders expect a continued uptrend, even though the price is currently near a key resistance level. Historically, such ratios have often preceded significant trend changes.

Key Resistance Levels to Break

After a meteoric rise from $2,120 to $3,939, the cryptocurrency has entered a tight consolidation phase.

Although the support level at the 0.236 Fibonacci extension, around $3,785, was quickly broken, the price subsequently rebounded, likely liquidating many short positions opened in its wake. It’s reasonable to think that bears have taken many similar positions.

If Ethereum manages to close above $3,500, it could then test its all-time highs at $3,939 followed by $4,051, which would constitute a clear bullish breakout. However, a break below the key support at $3,356 would challenge this optimistic scenario.

The POC at $3,747 represents the first resistance to overcome, followed by $4,051 and $4,150.

In summary, despite Ethereum’s recent decline, several technical and on-chain signals suggest that savvy investors may have already set a trap for bears. A bullish trend reversal could therefore be in the works for the most confident holders.

How to Buy Ethereum (ETH) on Bitget ?

Follow the whales by buying ETH now in a few simple steps on Bitget :

1. Sign up on Bitget : Create an account on Bitget.com or via the app. Complete KYC verification to access all features.
2. Deposit funds : Transfer USDT or another cryptocurrency from an external wallet to Bitget.
3. Access the ETH pair : Search for ETH/USDT in the “Spot” section. Check the current price (approximately $3,645).
4. Place an order : Use a market order for instant purchase or a limit order for a target price. Confirm the transaction.

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