Ethereum (ETH) Price Rally Builds Momentum: Bullish Pattern Signals Breakout

Ethereum

Ethereum (ETH) Price Rally Builds Momentum: Bullish Pattern Signals Breakout

• Ethereum (ETH) price surged 42% in 3 days, forming a bullish ‘triple white soldier’ pattern from $1,812 to $2,584.
• 6.61M ETH holders were near break-even as price held above $2,500; $67M ETH could soon turn profitable.
• A 3% ETH move risks $786M in shorts or $715M in longs, setting up for a sharp market swing.

The recent Ethereum price rally captured market attention as it climbed above $2,500 after a sharp 42% surge within days. This price movement pushed nearly 6.61 million investors closer to profitability, while short sellers faced liquidation risks exceeding $786 million.

Strong technical patterns, such as a triple white soldier and rounding bottom, emerged. That suggested Ethereums current trajectory could continue toward key resistance levels, including the $3,000 psychological mark.

Ethereum (ETH) Price Surge Broke Key Levels as Bullish Pattern Emerged

Ethereums price rose sharply from $1,812 to $2,584 between May 8 and May 10. The rally formed three consecutive bullish candles, known as the “triple white soldier” pattern. It indicated strong buying interest.

ETH had previously dropped to $1,386 during global economic concerns. The recovery surpassed the earlier peak of $2,517 seen in March, forming a rounding bottom structure that typically signals a trend reversal.

While holding above $2,500, Ethereum gained support from bullish traders targeting a breakout. The projected move from the pattern suggested a possible 81% increase, targeting $4,570.

Source: TradingView

Ethereum price also traded above its 200-day Exponential Moving Average (EMA) at press time. It is a level often seen as a long-term bullish indicator. However, with the Relative Strength Index (RSI) entering the overbought zone, there was potential for short-term corrections.

Since ETH declined below $2,430, which combined the 200-day EMA and the 50% Fibonacci level, the uptrend got weakened. A further drop could see ETH testing support at the 100-day EMA near $2,144.

Leverage Builds Pressure with $1.5 Billion in Liquidation Risk

Leverage across the Ethereum market has increased, exposing both bulls and bears to large-scale liquidations. According to Coinglass, if ETH rises 3% to around $2,586, nearly $786 million in short positions could be forced to close.

Such an event could trigger a short squeeze, which would intensify buying pressure and extend the rally. The quick pace of liquidations can amplify price momentum in a short time.

On the other side, a 3% decline to around $2,438 could threaten $715 million worth of long positions. If this occurs, the price could fall sharply due to cascading liquidations.

This situation placed Ethereum in a sensitive position, where a minor move in either direction could lead to larger market swings. Traders closely monitored these levels as the next move could be decisive.

Whale Accumulation Grows as Large Holders Return to Profit

The recent Ethereum price rally brought renewed activity from large holders. One major whale, previously down $21 million, has now flipped that loss into a $21.7 million profit. The investor held over 50,000 ETH, valued at around $104.5 million at the time of writing.

This turnaround reflected growing confidence among experienced market participants. As Ethereum broke above the $2,500 mark, data showed a rise in wallet addresses accumulating ETH. This trend showed a stronger belief in the assets price recovery and potential for further gains.

Source: X

Whale accumulation often signals long-term bullish sentiment. Increased buying from large holders can also reduce available supply, supporting upward price momentum.

The broader market showed signs of strength, and the price held key technical levels. So, the return of profitable whale activity could play a central role in Ethereums ongoing rally.

Profit Zone Expanded for 6.6 Million Ethereum Investors

Data from IntoTheBlocks Global In/Out of the Money (GIOM) tool showed that 6.61 million investors were nearing profitability. These investors held about 66.96 million ETH bought between $2,360 and $2,557, with the average at $2,462.

At higher prices, ETH holders choose to realize profits, which lowers the general willingness to sell. If Ethereum price could hold the level above $2,557, then each and every token among the total supply of 67 million tokens could be profitable.

This development could minimize the risk of massive losses and maintain the extended-term upward trend.

A consistent bull market, with ETH breaking through the $3,000 level, may see technical experts predicting an advance to $4,570 as the next primary objective. Doing so would indicate significant follow-through of the recent reversal of an uptrend.