Nazia Saeed
- ETH charts show a “Power of 3” breakout pattern with a potential rally to $5,000
- Seven consecutive weeks of positive inflows into spot ETH ETFs support bullish momentum
- Bearish pressures grow with whale exchange inflows and increased short positions
Ethereum (ETH) may be on the cusp of a powerful bullish breakout that could double its price, according to analysts tracking a rare trading pattern known as the “Power of 3.” However, bearish indicators and whale-driven selling pressure threaten to derail the rally in the short term.
On-chain data and technical indicators suggest that Ether is now in the final stages of the Power of 3 set up; an institutional strategy framework involving Accumulation, Manipulation, and Distribution. The pattern, currently unfolding on ETH’s price chart, mirrors the cryptocurrency’s rally in 2016–2017, which preceded a significant surge.
Between May 9 and June 20, ETH experienced the accumulation phase, trading sideways in a tight range. This quiet period set the stage for larger movements, which came with a sharp drop to just above $2,100 a move analysts describe as manipulation aimed at flushing out weak hands and triggering premature short positions.
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That brief breakdown was quickly absorbed by buyers, propelling ETH back above $2,500 by the following Monday. According to data from Glassnode, spot Ethereum ETFs recorded net inflows of 106,000 ETH last week, reinforcing the shift into the distribution phase the final and often most explosive stage of the pattern.
If the setup completes, analysts estimate a price target north of $5,000, representing a potential 100% gain from current levels.
Institutional momentum builds
The bullish momentum is underscored by strong institutional interest. The recent inflows into spot ETH ETFs marked the seventh straight week of positive movement, highlighting growing long-term confidence in Ethereum’s fundamentals amid broader crypto market resilience.
Despite the optimistic technical setup, analysts warn that Ethereum is not without downside risk. Recent trading activity has raised red flags. A major ETH whale reportedly moved $237 million in Ether from staking to exchanges over 62,000 ETH entered Binance in just five days hinting at mounting sell-side pressure.
At the same time, ETH’s failure to break the $2,500 resistance level has been noted by traders, with one analyst, Exitpump, highlighting rising open interest and falling spot prices during the New York trading session. This divergence signals growing bearish sentiment.
Short-term funding rates have also flipped negative, and spot trading volume is declining both indicators of weakening momentum. Technical analysis shows that if Ethereum breaks below current support, key downside levels between $2,350 and $2,275 could be tested. In a worst-case scenario, a full breakdown could trigger a 25% correction to $1,600, especially given ETH’s fall below a multi-year symmetrical triangle support line.
