Ethereum (ETH) has surged over 58% in the past 30 days, with nearly 40% of that gain occurring in just the last 10. Despite this sharp upward movement, several technical signals now suggest caution.
Signs of Momentum Weakening
After a month of strong performance, Ethereum’s BBTrend—a momentum indicator—has flipped negative. On May 12, it peaked at 28.39, marking the height of bullish sentiment. However, it now sits at -0.02, signaling a potential cooling phase.
The Bollinger Band Trend (BBTrend) measures price strength relative to volatility. Positive values indicate bullish momentum, while negative ones suggest weakening trends. With the BBTrend dipping below zero, ETH may be losing steam after its strong rally.
Whale Activity Drops Below Key Level
In another red flag, Ethereum whale accumulation is decreasing. Addresses holding between 1,000 and 10,000 ETH—commonly referred to as whales—have dropped from 5,463 to 5,393 over the past 10 days. This is the first time since April 9 that whale wallets have dipped below 5,400.
Why does this matter? Large holders often signal market confidence. When their numbers rise, it usually indicates accumulation. But falling numbers can point to profit-taking or caution, especially after a major rally.
Ethereum Struggles at Key Price Levels
ETH has repeatedly failed to break through resistance at $2,741 and $2,646. While its Exponential Moving Averages (EMAs) still show a bullish setup, short-term momentum is fading. The short-term EMAs are flattening, and the distance between them is narrowing—often an early warning sign of trend reversal.
To reclaim momentum, ETH needs to break above the psychological $3,000 level, a price it hasn’t seen since February 1. Without fresh buying pressure, the rally could stall. If bearish pressure increases, Ethereum could fall to support at $2,408, with further downside targets at $2,272 and $2,112.
What’s Next for Ethereum?
Analysts remain divided. Some believe Ethereum could outperform Bitcoin in 2025, while others question its long-term value. For now, Ethereum’s trend is still technically bullish, but the market needs a fresh wave of confidence to keep the rally going.
If buying interest returns and whale accumulation picks up again, ETH could have another shot at breaking $3,000. Until then, traders should watch key indicators closely.
