Key Insights
- •ETH trades below a major trendline as whales accumulate and retail wallets continue to exit.
- •Reclaiming $3,160 could trigger a run toward the next liquidity zone near $3,380.
- •Holding above $2,850 keeps bullish setups active as buyers target the $4,000 level next.
Ethereum is currently trading just under a key trendline that it lost in November. This trendline, which has been in place for several years, was briefly broken earlier in 2025. Since that break, price has pulled back and is now testing the level from below.
The monthly candle shows ETH attempting to recover this trendline. Price is positioned around $3,376, following a significant upward move over the past week. While the previous high near $4,800 remains distant, reclaiming this trendline is considered a crucial step toward that higher level.
As Rekt Capital noted,
“Ethereum needs to try to reclaim the multi-year downtrend it had lost… to get closer to $4000.”
Weekly Open and Liquidity Zones in Focus
On the 4-hour chart, Ethereum is navigating the area between $3,130 and $3,160, situated just below the weekly open. The price recently experienced a bounce from the $2,850–$2,870 zone, which is identified as a critical area of prior sell-side pressure. Since this bounce, ETH has consistently printed higher lows and maintained short-term support.
Analysts are observing a potential move above the $3,120–$3,160 zone, which would need to be supported by stronger bids and increased buyer interest. The range between $3,300 and $3,380 is identified as the next likely area where price could advance. This zone contains resting buy orders and has historically acted as a significant liquidity draw.
“Holding above this [green zone] keeps long setups valid,”
Larger Wallets Are Accumulating While Retail Sells
On-chain data reveals a consistent increase in ETH holdings among larger wallets. Over the last three weeks, wallets containing between 100 and 100,000 ETH have collectively acquired more than 934,000 ETH, an accumulation valued at over $3.1 billion. This segment of holders includes significant market participants, often referred to as whales and sharks.
Concurrently, smaller wallets, those holding less than 0.1 ETH, have divested over 1,000 ETH in the past week. This observed pattern, where retail investors sell into strength while larger holders accumulate, has been a recurring theme in previous market cycles.
ETH Needs to Close Above Trendline for Further Gains
Ethereum is currently in a retest phase. Although it has recovered from recent lows, a decisive close above the long-term descending trendline is still required. A clean monthly close above this critical level would pave the way for retesting the $4,000 area.
In the short term, if Ethereum can sustain its position above $3,080 and break through $3,160 with robust trading activity, a move toward the $3,300–$3,380 zone could materialize. The pivotal level for maintaining active bullish setups remains at $2,850.