ETH faces a technical deadlock; large holders' purchase of 15,000 coins hints at hidden risk signals

The Market Truth Behind Whale Movements

Today, a large on-chain holder suddenly swallowed 15,000 ETH in a short period, with a trading volume of $55.15 million. This news immediately drew market attention, but is it a reversal signal or a market trap? The answer is more complicated than you think.

Market history shows that large holders bottoming out often indicate deeper declines. Their clear goal is to create a false rebound by absorbing liquidity, shaking out scattered investors’ chips, and paving the way for cheaper absorption later.

Dangerous Signals Revealed by Candlestick Patterns

Ethereum’s 1-hour candlestick chart shows a clear technical reversal. The MACD indicator’s white and yellow lines have fallen below the zero axis, which is traditionally a bearish signal. But what’s more worth warning about is that the indicator is also brewing a golden cross.

What does this phenomenon mean? In the short term, a false rally may occur, followed by an even more violent decline.

Multiple Resistance Levels Form a Selling Pressure Fortress

The price levels at 3735 and 3880 have accumulated a large number of sell orders, like two insurmountable peaks. Any attempt to rebound into this range will face heavy selling pressure. The 3500 level then becomes the next key target.

Rebound space is limited, but the downside potential is huge — this is the current situation ETH faces.

Support System Analysis

Looking downward, a support zone forms between 3416 and 3350, which has been tested multiple times as a stop-loss area. If it fails to hold, 3320 will become the stop-loss line.

Deeper support appears near 3078, which could be the ultimate bottom for this decline. But novice investors need to beware of a deadly misconception — don’t chase rebounds at support levels. The market always tests human nature; retail traders chasing highs and seasoned traders front-running bottoms have both been burned here.

Current Trading Strategy

Bearish Strategy: It’s safest to establish short positions around 3735, with a stop-loss set at 3800, targeting a short-term drop to 3500. This move is a small fish with little meat, so avoid greedily chasing the kill.

Bullish Testing: Small long positions can be entered in the 3416 to 3350 range, but with stop-loss orders in place. If support breaks, exit immediately — this is an iron rule.

Bottom Positioning: The area around 3078 is a potential bottom zone for this round, but it’s not recommended to heavily load up on longs prematurely.

Overall Outlook

Ethereum’s trend is clear — after rebounding to the 3730-3880 resistance zone, it drops again. If it breaks below 3500, it further confirms weakness, possibly testing the second support zone at 3350.

Currently, ETH is priced at $2.95K, with a 24-hour decline of -0.87%. The technical picture remains bearish, and investors should stay alert, strictly follow stop-loss rules, and wait for clear reversal signals before considering entry.