Ether's Potential $4K Surge Indicated by Triple Bottom Pattern
Ether shows signs of recovery as major investors accumulate during a price dip, hinting at a breakout beyond $4,000.
Key takeaways:
- Ethereum’s triple bottom pattern near $3,750–$3,800 suggests a possible 10% increase in October.
- Large investors (10,000–100,000 ETH) are quietly purchasing, absorbing supply from smaller holders during the recent market drop.
Ethereum’s native token, Ether (ETH), indicates a typical bearish reversal setup after experiencing a 6.50% decline in October.
Triple Bottom Signals a Possible $4,000 Breakout
As of Thursday, Ether’s 4-hour chart reveals a triple bottom pattern, which forms when prices touch the same support level three times without breaking lower.
This support appears around $3,750–$3,800, where buyers have continuously defended the price. Each bottom indicates a loss of selling strength, while buyers gain momentum.
ETH/USDT four-hour chart. Source: TradingView
Currently, Ether faces a significant resistance zone near $3,950–$4,000, coinciding with the 50-period exponential moving average (50-period EMA). A decisive break above this neckline would confirm the triple bottom pattern, potentially leading Ether toward a price target of approximately $4,280—a 10% rise from current levels—by late October or early November.
Related: Ethereum fails again above $4K as traders grow frustrated with shakeouts
Trading volumes have been gradually declining during this pattern’s formation, which typically occurs before a breakout. A marked increase in buying volume with the breakout will validate the triple bottom setup.
The bullish reversal aligns with an analysis from trader Kamran Asghar, though he also identifies the $4,800–$5,000 region as a key resistance.
ETH/USD four-hour chart. Source: X
Mega-whales Accumulate Ether from Smaller Investors
On-chain data from Glassnode highlights a notable shift in Ether ownership during the recent drop in prices.
Large wallets holding 10,000–100,000 ETH, known as “mega whales,” have been accumulating Ether at an unprecedented rate, now controlling close to 28 million ETH.
ETH supply held by addresses with 1K-100K balance. Source: Glassnode
Simultaneously, smaller holders with 1,000–10,000 ETH have seen significant declines in their balances throughout the last month amidst Ether’s price correction. This suggests that as prices dropped, many mid-sized holders either sold into the dip or bought more ETH to elevate themselves into a larger cohort.
This article does not offer investment advice or recommendations. All investments and trading moves carry risks, and readers should conduct their own research before making any financial decisions.
