Altcoins News

Story: Ethereum Shows a Reversal Setup as Buyers Look for Confirmation at Critical Supply Levels

By Sakamoto Nashi

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Harami Pattern Presents an Opportunity — But a Repeat of the Past Is Still…. The bullish harami has formed after a large red candle was followed by a smaller green candle that…

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Large Holders Limit the Strength of the Setup. One major factor preventing early optimism is whale participation.

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Key Levels Will Decide Whether Ethereum Extends the Recovery or Loses Momentum. Technical levels now play a crucial role in determining whether the reversal expands or fades.

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Where the Pattern Fails. The bullish setup weakens significantly if Ethereum loses footing at $3,150.

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Market Conditions Suggest Patience Is Key. Market sentiment surrounding Ethereum is currently divided.

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Ethereum has entered a crucial phase in its price structure, rising cautiously after a steep 11.5% decline that shook the market earlier this week.

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Even so, Ethereum has printed a bullish harami pattern on the daily chart — a reversal formation that often indicates selling pressure is cooling down while buyers gradually…

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The bullish harami has formed after a large red candle was followed by a smaller green candle that sits entirely within the previous day’s trading range.

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However, experienced Ethereum traders remember a similar pattern that appeared on November 5.

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If momentum expands gradually, the harami may provide the foundation for a broader bounce. If not, Ethereum could repeat the November scenario where the signal expired without…

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One major factor preventing early optimism is whale participation. While reversal patterns rely heavily on increased demand, data from Glassnode shows that the number of wallets…

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Wallet counts in this category have been falling since November 2. Although there was a short uptick between November 6 and 11 during a minor recovery phase, the downward trend…

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The drop in whale ownership does not erase the bullish harami, but it reduces confidence behind it.

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However, the more significant test lies near $3,650. Glassnode’s cost-basis heatmap shows that the region between $3,638 and $3,667 contains one of the largest supply clusters in…

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A sustained daily close above $3,650 would deliver the strongest sign that the harami reversal has succeeded and that Ethereum has entered a more reliable recovery structure.

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