ETH price faces risks as whale activity continues to fall

Ethereum (ETH) is sending mixed signals while oscillating near an important technical zone, causing traders to follow closely for a breakout or breakdown signal. On one hand, the BBTrend indicator has sharply reversed to a bullish trend, rising to 4.99 after hitting -3 just one day earlier – indicating that bullish momentum is gradually strengthening.

On the other hand, whale activity continues to decline for the seventh consecutive day, a potential signal indicating that institutional confidence may be weakening. As ETH is stuck in the 2,500 zone and has dropped 8% in the past 24 hours, the next move could determine the short-term direction of the market.

BBTrend of ETH has flipped to bullish: What does the level 4.99 indicate?

The BBTrend indicator of Ethereum has surged to 4.99, rising sharply in just a few hours after reaching a high negative level of -3 on June 11.

This sudden reversal signals the market's potential shift from a bearish to a bullish state, as the trend strength has moved into a positive zone and is approaching a high threshold — often a sign of an imminent breakout scenario.

BBETH Trend | Source: TradingViewBBTrend (Bollinger Band Trend) measures the strength of the price trend against Bollinger Bands. A value above 0 implies bullish momentum, while a value below 0 indicates selling pressure.

The level around 4.99 shows that the bullish momentum is very strong. If this trend is maintained or continues to strengthen, it could signal the next bullish potential for ETH, as traders see this as a sign of a change in market sentiment and positioning.

The number of ETH whales decreases for 7 consecutive days: Bearish signal?

The number of ETH whales – wallets holding between 1,000 and 10,000 ETH has steadily decreased to 5,378, compared to 5,427 ten days ago and 5,400 just three days ago.

This is a seven-day consecutive downtrend, which may reflect caution from large holders, although the open contract (OI) in the ETH futures market has recently reached an all-time high.

Whale wallets often represent the sentiment of institutional investors or wealthy investors. A continuous decrease in their numbers usually signals profit-taking, risk reduction, or a decline in confidence in short-term price action.

Whale ETH Holdings | Source: SantimentFollowing whale activity is very important, as these large addresses have the potential to significantly impact market trends through their trading. When the number of whales increases, it is often understood as a process of accumulation – a strong signal of confidence in future bullish potential.

On the contrary, the continuous downtrend as it is now suggests that large holders may be selling off or stopping their purchases.

This behavior weakens the support zone and leads to stronger volatility. If the number of whales continues to decrease, it could put downward pressure on ETH and increase the risk of a broader market correction.

ETH approaches an important support zone as resistance at 2,900 dollars holds firm

ETH has recently been unable to break through the resistance level around $2,900 and is currently trending downward, approaching the important support zone at $2,479. If the price tests this support zone and fails to hold, the next bearish targets will be $2,326 — especially if the downward momentum continues to strengthen.

These are key price zones, as if the price breaks and closes below these levels, it will mark a change in the short-term market structure and may trigger the next wave of selling.

In the context of weakening whale activity and a somewhat cautious market sentiment, ETH is currently at an important technical crossroads.

ETH Price Chart | Source: TradingViewOn the contrary, the BBTrend indicator has shown a strong reversal towards a bullish trend, meaning that buying pressure may be increasing. If ETH regains momentum and successfully retests the resistance level of 2,900 dollars and breaks through, it could open up opportunities for a bullish run towards the 3,000 dollar mark – a price level not seen since February 1st.

Such a move is likely to bolster bullish sentiment and attract interest back from traders who are on the sidelines. However, for this scenario to occur, the bulls must first reclaim the lost zone and turn the $2,900 level into a solid support zone.

Dinh Dinh