TLDR
- Ethereum whales added 150,000 ETH, valued at $603 million, in just two days.
- A bullish RSI divergence suggests Ethereum’s downtrend may be ending.
- Ethereum’s exchange outflows surged 25%, signaling rising buying pressure.
- Ethereum faces key resistance at $4,076, with higher targets above it.
Ethereum’s price is showing early signs of a potential bullish reversal, as recent data suggests that large investors, or whales, are increasing their positions. Over the past few days, these investors have added approximately $600 million worth of ETH, signaling renewed confidence in the asset. Alongside this, key technical indicators also hint at a shift in momentum, suggesting that Ethereum may be on the brink of a price recovery.
Bullish Divergence Signals Potential Reversal
The Relative Strength Index (RSI) for Ethereum has been displaying a bullish divergence, a technical indicator that often points to a reversal in price trends. This occurs when the price forms lower lows, but the RSI forms higher lows. Such a setup suggests that selling pressure is diminishing, which could be an early sign that Ethereum’s downtrend is coming to an end.
The last time Ethereum showed this pattern was between March 10 and April 21, 2025, before its dramatic 84% rally. The current RSI divergence is being closely monitored, as it mirrors the technical setup observed prior to that significant price increase. Traders and analysts are watching this closely, as a similar move could result in a strong upward trend for Ethereum.
Whale Accumulation Indicates Confidence in Ethereum’s Future
Ethereum whales, or addresses holding large amounts of ETH, have significantly increased their holdings in recent days. On-chain data reveals that, from October 14 to October 16, these investors added approximately 150,000 ETH, valued at $603 million, to their wallets. This surge in accumulation indicates that large holders are positioning themselves for potential growth.
While the pace of accumulation is gradual, it signals renewed confidence among these major market players. Historically, such whale activity has been associated with market bottoms, where large investors take advantage of lower prices in anticipation of future gains. This trend could provide further support for Ethereum’s price, as these whales continue to build their positions.
Rising Exchange Outflows Suggest Increased Buying Pressure
Another positive sign for Ethereum’s price is the increase in exchange net outflows. Between October 10 and October 15, the amount of ETH leaving exchanges surged by 25%. This spike in outflows is the highest level observed since late September 2025. As more ETH is removed from exchanges, it is typically viewed as a sign that investors are moving their assets into long-term storage, which reduces selling pressure.
This growing trend of net outflows reflects an overall increase in buyer interest. With fewer tokens available on exchanges, the supply-demand dynamic could push Ethereum’s price higher, especially if demand continues to rise. As more ETH is withdrawn from exchanges, it further supports the idea that investors are positioning for a potential price increase.
Ethereum Faces Key Price Levels for a Potential Breakout
Despite these bullish signals, Ethereum’s price remains near a critical resistance level. The immediate resistance for ETH is around $4,076, and a clear break above this level could pave the way for further gains. If the price manages to close above this level, the next targets are $4,222 and $4,557. These levels represent key price points for a potential continuation of the bullish trend.
On the downside, Ethereum has strong support at $3,952 and $3,877. A decline below these levels would suggest that the bullish setup could be invalidated, and the price could move towards $3,640. Therefore, traders are closely monitoring Ethereum’s price action to see if it can break above resistance and continue its recovery.
