Ethereum has been under pressure lately. In the past 7 days, the price has fallen over 2%, currently sitting around $3,681. That’s still almost 25% below its all-time high. Many people think the bears are in control. But what if this is just a setup — a bear trap? Behind the scenes, some powerful signals are pointing toward a possible bullish reversal.
Let’s break down the top 3 reasons why Ethereum may be ready to rise again — and why the smart money could already be ahead of the curve.
1. Whales and Retail Are Accumulating – But Mid-Tier Wallets Are Selling
In the last 30 days, large ETH holders (whales) increased their holdings by 1.82%. At the same time, small retail investors also grew their ETH balance by 1.87%.
This is unusual — both the biggest and smallest players are buying more ETH. Meanwhile, mid-sized wallets are actually reducing their holdings. This suggests a shift: assets are flowing from the middle tier to the extremes.
Whales usually make moves based on strong insider signals or long-term strategies. And if retail is following them, it means confidence is growing. This kind of setup often traps mid-tier investors who sell early, only to miss the next big move.
2. Bull Wallets Outnumber Bear Wallets 7 to 1
A unique tool from IntoTheBlock tracks wallets that behave like bulls or bears. Bull wallets are those buying more than 1% of daily volume, while bear wallets are selling more than 1%.
Over the past 7 days, the number of bull wallets has beaten bear wallets by a huge margin — 7 to 1.
This doesn't just show investor optimism. It confirms real on-chain action: wallets are buying, not selling. Even though the price is under pressure, more people are adding ETH to their bags. That’s a bullish sign.
3. Long Trades Still Dominate – Traders Expect Upside
Despite recent price drops, traders are not giving up on ETH. The Long/Short Account Ratio on Binance is now at 1.91 — meaning nearly twice as many accounts are holding long positions compared to shorts.
This is not about volume; it's about how many people expect the price to rise versus fall. A high ratio like this often shows up just before a strong move in the market.
Traders are clearly betting that the worst is over — and a breakout might be coming soon.
Bonus Signal: ETH Is Holding an Ascending Triangle Pattern
On the daily chart, Ethereum is still maintaining an ascending triangle pattern — a structure that often leads to breakouts.
ETH broke out earlier from $2,120 to $3,939 and has since moved sideways. It briefly lost support at $3,785, but quickly bounced back after testing the lower line near $3,356. That bounce triggered a short squeeze, liquidating many bearish positions.
This kind of fast reversal is often a signal that bears are being trapped — and bulls are getting ready to run.
If ETH closes the daily candle above $3,785, it could quickly test $3,939 again — and then possibly break out to $4,051. That would be a strong bullish confirmation.
But if ETH falls below $3,356 and fails to hold, the bullish setup could break down.
Final Thoughts
Right now, Ethereum is in a tricky spot. On the surface, price action looks weak. But underneath, the data is telling a different story. Whales and retail are accumulating. Bull wallets are outpacing bears. Traders are leaning bullish. And the chart still shows a strong bullish pattern.
All signs point to one thing: this could be a bear trap — and the next breakout might catch many by surprise.
Stay alert. ETH may be ready to move.