- The ETH resistance level at $3,920 could be crucial for a milestone breakout.
- The king altcoin whale activity and high inflows indicate bullish momentum.
Ethereum [ETH] consolidates within a flag pattern, indicating a potentially important move. The altcoin is currently testing the critical resistance level at $3,920.
Notably, this resistance has seen ETH rejected five times in the past, raising expectations about its next direction.
ETH is testing the USD 3,920 resistance level
On the weekly charts, Ethereum’s current price action is a struggle at the USD 3,920 level. The resistance level is located in the center of the flag pattern.
Historically, this level has acted as a formidable barrier, leading to five outright rejections. However, the structure of the flag indicates that Ethereum may break out and possibly reach a new all-time high if it is broken.
Source: Tradingview
In addition to the optimism, broader sentiment in the ETH market appears favorable. Data from CryptoQuant shows increasing foreign exchange inflows since early December, indicating increased investor interest.
Such inflows often precede significant market moves, further supporting the bullish outlook for altcoins.
Source: CryptoQuant
ETH whales are making moves
ETH whales are also making their presence felt. In fact, major trades are up more than 21% in the last 24 hours alone. This indicates that the major players in the king altco market are positioning themselves for a potential milestone breakout.
Historically, increased whale activity has often preceded significant price movements, which has increased Ethereum’s breakout potential.
The aforementioned surge in ETH whale activity complements the inflows data and paints a picture of growing confidence among both institutional and retail investors.
Source: IntoTheBlock
Liquidation heatmap gives a bullish signal
Looking at the liquidation heatmap for ETH, the bias remains bullish. This is consistent with the technical structure and supports the possibility of Ethereum overcoming the USD 3,920 resistance level.
Source: Coinglass
Read Ethereum’s [ETH] Price forecast 2024–2025
With a bullish flag pattern, increasing currency inflows and rising whale activity, the altcoin appears to be gearing up for a possible breakout.
If ETH manages to overcome the USD 3,920 resistance, it could make its way to a new all-time high.