ETH Eyes $8,500 If It Clears $4,800 Resistance; Whale Accumulation and Falling Shorts Add Momentum
Ethereum (ETH) is approaching a key resistance zone near $4,800, with some analysts projecting a potential extension toward $8,500 if that level is cleared. ETH traded around $2,970 at publication, up about 2% over the past week. Technical setups include a daily descending channel—where a decisive daily close above the channel could target $5,000—and a weekly inverse head-and-shoulders pattern whose neckline lies near $4,800. Short-term support sits near $2,800, while a move above $3,060 could open $3,230; a drop below $2,880 would invalidate the near-term bullish bias. On-chain data show shrinking exchange reserves (down >4 million ETH this year) and growing accumulation by addresses holding 10,000–100,000 ETH (now controlling over 21 million ETH). Short interest has dropped markedly, increasing the risk of short squeezes around $3,080–3,060. Analysts cited: Javon Marks (targeting $8,500 contingent on clearing $4,800), Clifton Fx (breakout watch to $5,000), Trader Tardigrade (inverse H&S). Key takeaways for traders: monitor price action at $4,800 (decisive breakout level) and $2,800–$3,060 (short-term support/resistance), watch for a breakout confirmation above the daily channel and neckline, and consider on-chain supply trends and reduced short interest that could amplify upward moves or fuel squeezes.
Bullish
The article highlights multiple bullish indicators: a potential inverse head-and-shoulders on the weekly chart with a neckline at $4,800, a possible breakout from a daily descending channel, declining short interest, and significant on-chain accumulation by large holders alongside falling exchange reserves. Those elements together increase the probability of an upside breakout and a strong momentum move — first toward $5,000 and, in the high-case scenario cited by analysts, toward $8,500 if the $4,800 barrier is cleared. Short-term catalysts include short squeeze risk around $3,060–3,080 due to reduced shorts. However, key invalidation points (daily channel rejection, drop below $2,880) would negate the bullish case. Historically, similar setups—on-chain outflows from exchanges combined with large-holder accumulation and technical breakouts—have preceded rapid rallies (e.g., prior ETH bull runs in 2020–2021). For traders: treat $4,800 as the decisive level for directional bias; manage risk near $2,800–2,880 and watch on-chain metrics and short interest for squeeze dynamics. Use tight stops around invalidation levels and consider position scaling on confirmed breakouts.