Key takeaways:

• Ethereum’s triple bottom pattern near $3,750-$3,800 points to a potential 10% bounce in October.

• Megawals (10,000-100,000 ETH) have been quietly accumulating, absorbing supply from smaller holders during the recent price decline.

Ethereum’s native token, Ether (ETH), suggests a textbook bear reversal setup following its 6.50% decline in October so far.

The triple bottom reignites the ETH potential at $4,000

Since Thursday, Ether’s 4-hour chart has been showing a triple bottom – a setup that forms when prices hit the same support level three times and fail to break lower each time.

In the case of ETH, this support is around $3,750-$3,800, with buyers consistently stepping in to defend the price. Each “bottom” shows that sellers are losing strength while buyers are quietly building momentum.

Currently, Ethereum faces a key hurdle related to neck resistance around $3,950-$4,000. This area also coincides with the 50-period exponential moving average (50-period EMA, represented by the red wave).

A triple bottom pattern would confirm whether Ethereum breaks decisively above the neckline. This could allow ETH to rise to a potential target price of around $4,280, which would represent a 10% upside from its current level by October or early November.

Related: Ethereum fails again above 4k dollars as investors become increasingly frustrated with the shake-up

Trading volume slowly decreased as the pattern formed, which is typical before a breakout. A noticeable raise in buying volume with the breakout will confirm the triple bottom setup.

The bullish reversal setup is consistent with trader Kamran Asghar’s setup analysisalthough the main area of ​​resistance shows the area of ​​u200bu200b$4,800-5,000.

Mega-whales absorb ETH from smaller fish

Onchain data from Glass knot shows significant reshuffling in Ethereum ownership during the recent price decline.

Vast wallets holding 10,000-100,000 ETH, often called “mega whales”, are quietly accumulating at the fastest pace in years, currently controlling close to 28 million ETH.

At the same time, the balance of smaller whales holding 1,000-10,000 ETH saw a pointed decline, especially last month during the correction in ether prices.

This suggests that as prices fell, some mid-market holders either sold and had their coins gobbled up by larger investors, or bought more ETH, pushing themselves into a larger cohort.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.