Ethereum has staged a sharp recovery from $3,800 to $4,200, marking its fourth false breakout this year, according to Matrixport. This rebound is being driven by renewed whale accumulation and bullish options positioning, setting the stage for a potential rally in the weeks ahead.
Matrixport Sees Constructive Setup for ETH Rally
Matrixport analysts noted that ETH has returned to its multi-year upper triangle formation and is attempting another breakout. Historically, false breaks have led to limited downside and strong rebounds, and the current price action mirrors those patterns. Technical indicators suggest strength heading into October, with seasonality expected to support upward momentum.
Options Traders Target Higher ETH Strikes
10x Research reports a notable shift in Ethereum options sentiment compared to last week’s expiry. Analyst Markus Thielen highlights that seasonality and trader positioning could steer the market’s next move. Most options traders are targeting $4,300 and $4,500 strikes, while some are betting on a surge to $5,000 by the end of October. The put-call ratio stands at 0.70, with max pain positioned at $4,200.
Whales Fuel Bullish Momentum with Massive Accumulation
Whale activity has intensified, with large holders withdrawing significant amounts of ETH from exchanges. Bitmine Immersion (BMNR) continues to accumulate, and SWIFT’s collaboration with Ethereum-native Consensys has further boosted sentiment. Lookonchain reported that wallets 0x93c2 and 0x6F9b acquired $106.74 million and $21 million in ETH within hours. Onchain Lens also tracked a whale withdrawing 3,629 ETH worth $15.22 million from Binance. Another wallet, 0x1fc, has accumulated nearly 29,800 ETH valued at $113 million over four months.
Ethereum Price Action and Market Outlook
Ethereum is currently trading at $4,185, up 1 percent on the day. The 24-hour range spans from $4,087 to $4,240, with trading volume surging 40 percent. Analyst Ted Pillows identifies $4,250 as the next key resistance level. Meanwhile, Ethereum ETF inflows have topped $546 million, with Fidelity alone purchasing $202 million in Ether. If ETH fails to hold above $4,200, a pullback toward $4,000 remains possible.
Frequently Asked Questions (FAQs)
- What is a false break in crypto trading?
A false break occurs when an asset briefly moves beyond a key support or resistance level but fails to sustain the move, often leading to a reversal.
- Why are whales accumulating Ethereum?
Whales are buying ETH due to bullish technical setups, institutional inflows, and strategic partnerships like SWIFT and Consensys.
- What does max pain mean in options trading?
Max pain is the strike price at which the most options contracts expire worthless, often influencing price movement near expiry.
