Ethereum (ETH) could be on the brink of a dramatic rally toward $5,000, according to technical analysts citing the emergence of a “Power of 3” trading pattern. But despite the bullish setup, growing short interest and significant whale activity suggest a short-term correction may be on the cards.The “Power of 3” model — accumulation, manipulation, and distribution — appears to be unfolding on ETH’s chart after a recent liquidity sweep below $2,200. Following this, the price quickly rebounded above $2,500, signaling the start of the distribution phase. Analysts say this phase targets trapped liquidity above, setting ETH up for a potential 100% rally.Supporting the bullish case, Ether-based spot exchange-traded funds (ETFs) logged net inflows of 106,000 ETH last week, marking seven consecutive weeks of positive momentum, according to Glassnode data. Institutional demand appears to be building.Thomas Lee, head of Bitmine, compared the current pattern to ETH’s 2016–2017 run, calling it potentially the “most hated rally,” fueled by disbelief but underpinned by strong structural fundamentals.However, bearish pressure is mounting. A whale recently moved over $237 million in ETH from staking to exchanges, with more than 62,000 ETH deposited on Binance alone — a move often interpreted as a signal for selling.At the same time, ETH struggles to break above $2,500. Traders report rising open interest on short positions, negative funding rates, and declining spot volume, indicating bearish sentiment in the near term. Key support levels lie at $2,350 and $2,275, with analysts warning of a possible drop toward $1,600 — a 25% correction — if selling intensifies.While Ethereum may be setting up for a long-term rally, short-term volatility and whale activity could cloud the path forward. via /r/waasssupcrypto https://ift.tt/Jzk06Qf
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