- A whale bought 9,610 ETH using a collateralized strategy, signaling confidence in a price rebound despite the recent 3.69% dip.
- A harmonic XABCD pattern points to a bullish reversal with a potential ETH target between $5,500 and $6,500 based on Fibonacci levels.
- Ethereum must clear key resistance zones near $2,000 and point B to sustain upward momentum and confirm the bullish reversal setup.
According to Spot on chain, a major Ethereum transaction has stirred market speculation, influencing both short-term strategies and long-term projections. Roughly seven hours ago, a newly created wallet absorbed 9,610 ETH worth around $14.54 million.
The wallet’s owner initially withdrew 5,000 ETH from Kraken. Then, they used it as collateral on Spark to borrow $7 million in USDS. With those funds, they purchased another 4,610 ETH at an average of $1,518. This strategic move suggests a bullish stance on Ethereum despite the current dip.
Moreover, this accumulation comes as ETH trades at $1,522.36, reflecting a 3.69% drop. Traders are watching this closely. The action could influence both traditional altcoin markets and AI token behavior. Besides, correlated asset classes often respond to ETH whale movements. Hence, maintaining tight stop-loss levels and monitoring volume spikes is now essential.
Harmonic Pattern Reveals Potential Price Reversal
Analyst Ghostmxmm’s analysis reveals a possible bullish reversal. A harmonic pattern on the ETH/USDT weekly chart shows a well-defined XABCD structure. Price has declined sharply from point B to C, nearing a critical support zone around $1,368.39. This level aligns with the 0.886 Fibonacci retracement, often linked to strong reversal zones. Consequently, many traders expect a rebound from this zone.
Additionally, the “Equal Lows” structure near point C suggests liquidity is accumulating. If this support holds, ETH may aim for point D. The upper target zone ranges between $5,500 and $6,500. This projection reflects Fibonacci extensions of 1.272 and 1.645. These levels often drive breakout momentum once resistance gets breached.
Critical Resistance Levels May Delay the Rally
However, Ethereum must surpass several resistance zones to maintain upward momentum. Notably, the $2,000 region represents a past consolidation zone. Price previously struggled here, signaling strong selling pressure. Moreover, point B also marks a historical rejection level. A confirmed breakout from this zone could ignite a larger rally.
Furthermore, historical patterns support this harmonic setup. Prior market cycles followed similar paths before large-scale reversals. Still, external factors remain influential. Macroeconomic shifts and investor sentiment could impact ETH’s trajectory.
