- Ethereum’s Power of Three pattern suggests a breakout phase may be underway soon
- Whale accumulation surges as large holders acquire $1.25B in ETH last month
- Exchange supply drops 5.5%, hinting at a looming Ethereum supply shock
Ethereum (ETH) has shown a renewed surge in investor confidence despite its underperformance earlier in the current cycle. Analysts now suggest that a powerful reversal pattern is unfolding, supported by whale accumulation and significant exchange outflows. As price action stabilizes and key technical patterns emerge, Ethereum could be setting the stage for a major breakout in the coming months.
This comes at a time when both institutional and retail interest appear to be rising steadily, pushing ETH back into the spotlight. Although recent short-term dips have occurred, broader market dynamics suggest that Ethereum may be preparing for a robust rally toward new highs by 2025.
Power of Three Pattern Sparks Optimism
According to analyst Crypto Yoddha, Ethereum is currently progressing through a “Power of Three” (PO3) technical structure. This three-phase pattern began with an accumulation period, followed by a sharp liquidity sweep to the downside. That movement marked what is often called the “spring” phase. Currently, ETH has reclaimed its previous trading range, suggesting the start of Phase 3, which typically involves an aggressive breakout.
$ETH was a disappointment so far in this cycle but we can not fade what's coming
— Crypto Yoddha (@CryptoYoddha) May 19, 2025
PO3 in progress: pic.twitter.com/h2RlmP6psO
Ethereum still faces resistance around $4,000, with strong support established near $1,800. However, if momentum holds, the price could potentially surge toward the $10,000–$12,000 range by late 2025. This pattern aligns with historical cycles where accumulation phases are followed by explosive upward moves.
Whale Activity and Shrinking Exchange Supply
Market confidence is further reinforced by a substantial rise in whale accumulation. Analyst TedPillows reported that over $1.25 billion worth of ETH has been scooped up by large holders in the last month. Wallets holding between 10,000 and 100,000 ETH have increased their balances significantly. These strategic acquisitions often indicate expectations of future gains.
Moreover, data from CryptoBusy highlights a 5.5% drop in exchange-held ETH supply over the past 30 days. Over 1 million ETH has been withdrawn, reducing exchange balances to levels not seen since 2021. Such outflows often signal a looming supply shock, where decreased liquid supply meets rising demandtypically a recipe for price appreciation.
Short-Term Volatility, Long-Term Outlook
Despite these bullish developments, Ethereum saw a 4.71% decline in the last 24 hours, with the current price hovering near $2,382. This marks a 5.33% loss over the past week. Yet, considering the 44% rise from $1,800 to $2,600 in recent weeks, some pullback is natural.
