Ether (ETH) is entering a critical bullish phase, with the “Power of 3” trading model — Accumulation, Manipulation, Distribution — signaling a potential breakout that could double its price to above $5,000.
Technical charts show that ETH completed its accumulation phase between May 9 and June 20, characterized by sideways price action and low volatility. This was followed by a sharp drop below $2,200 last Sunday — the manipulation phase — before quickly rebounding to over $2,500 on Monday, triggering strong inflows from institutional investors.
According to Glassnode, spot ETH ETFs saw net inflows of 106,000 ETH last week — marking the seventh consecutive week of positive flows. This significant capital movement supports the transition into the final distribution phase of the pattern, where prices typically accelerate upward to release trapped positions at lower levels.
In this context, the distribution phase target is projected to exceed $5,000 — a 100% rally from current levels. Bitmine’s newly appointed head analyst, Thomas Lee, believes Ether may be entering the “most hated bull run,” driven by long-term market structure and institutional demand despite widespread skepticism.
However, a bearish scenario remains possible. If ETH fails to hold above the $2,500 resistance zone, it could fall below the lower boundary of a multi-year symmetrical triangle, triggering a potential 25% correction down to around $1,600.
Adding to the downside risk, a large ETH whale recently moved approximately $237 million worth of ETH from staking to exchanges, including over 62,000 ETH sent to Binance within five days — sparking concerns about increased selling pressure from major holders.
Derivative market data also reflect bearish sentiment. Open interest rose while ETH prices fell, indicating that traders are increasing short positions. At the same time, short-term funding rates turned negative and spot volume declined, signaling growing downward pressure. If the bearish trend continues, key support levels lie between $2,275 and $2,350.
In summary, ETH stands at a critical crossroads: it could either surge past $5,000 in a powerful bullish move — or face significant downside if it fails to maintain current support levels.
