Key points:
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Ether’s chart shows the “3” setting, with its target share price of over $5,000.
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The on-site ETH ETF recorded a net inflow of 106,000 Ether last week, marking a positive inflow for the seventh consecutive week.
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With the increase in whale exchange and short positions, ETH still faces a potential 25% correction.
Ether (EtherethThe price chart shows the textbook “3” setting after the trend bias that occurred last Sunday between $2,100 and $2,200. The campaign unfolds after a period of time between May 9 and June 20.
The sudden liquidity sweep pushed ETH to several months of support, but buyers quickly absorbed the decline, with prices exceeding $2,500 by Monday.
Ether prepares for the “most annoying rally” in the third quarter
The abbreviation of power, accumulation, manipulation and distribution of 3 or “AMD” models provides a framework for understanding institutional investor trading strategies in major liquidity areas.
The cumulative phase is usually characterized by quiet lateral price action, which occurs between May 9 and June 20. At this stage, market participants establish positions while volatility remains low, laying the foundation for larger moves.
Next is the manipulation, visible in a brief breakdown below $2,200. Here, price action is intended to trigger panic among retail investors and force of premature birth or short-term sales, just to oppose the expected move.
Institutional investor demand followed as ETH rebounded from $2,500 at $2,200 to $2,500. GlassNode data noted that the net inflow net ETF recorded 106,000 ETH in the net inflow last week, marking a seventh consecutive week of positive flow. This important capital movement further verifies the transition from the setup to the final stage.
The allocation phase is now in which the ETH begins actively moving in the opposite direction of the manipulation area. The liquidity pool above becomes the target and the price usually accelerates as the trapped location is unraveled. In the current market, the ether distribution phase targets above $5,000, i.e. 100% of the gathering.
3 patterns of power mirrored ether 2016-2017 rally. Thomas Lee, newly appointed head of Bitmine, Highlight This fractal suggests that ETH may be on the brink of its “most annoying rally,” a surge in expectations of a few, but driven by institutional investors and long-term market structure.
Related: Bitmine raises $250 million to launch Ethereum’s Treasury Department
Ether may face 25% correction
Instead, Cointelegraph Report Bearish outlook may also be emerging. Ether failed to break the long-standing technical resistance and below the lower boundary of a multi-year symmetric triangle on the two-week chart, Ether’s potential dropped by 25%.
Meanwhile, a giant ETH whale stepped about $237 million from inventory to exchange, with more than 62,000 ETH already entering Binance in five days. This wave from large holders to central wallets shows that ETH’s sales pressure and downside risks are increasing.
Crypto traders also export Famous That ether is working to break the resistance level of $2,500, and the current market has shortened the altcoin. The chart shows that aggregated open interest during the NYSE rose even as ETH prices fell.
At the same time, short-term financing rates become negative and the spots decrease, and the signal will increase bearish pressure. Now, immediate liquidity is concentrated below the current range, with a key downside target ranging from $2,350 to $2,275.
Related: Ethereum risk 25% price drops, “Big Whale” moves ETH’s $237 million to exchange
This article does not contain investment advice or advice. Every investment and trading move involves risks and readers should conduct their own research when making decisions.
