Ethereum (ETH) – Emerging Accumulation Phase Signals Building on 4H Timeframe

The 4-hour chart for Ethereum is revealing what appears to be a shift toward accumulation dynamics, contrary to earlier distribution expectations. With ETH trading near a critical floor level around $2,450, a sizable descending channel pattern has been taking shape. Following a recent downward leg that triggered a sharp reversal wick—consistent with a selling climax signature—the market has undergone an automatic reaction, now entering what looks like a secondary test phase. The developing structure suggests we may be transitioning into Phase B of accumulation, where higher highs and higher lows could emerge before another wave of buying consolidation unfolds.

Why The Structure Points Toward Accumulation Rather Than Breakdown

The most striking characteristic is a divergence between price action and internal market strength. While Ethereum continues making lower price levels, the underlying momentum indicators are not confirming these declines. This pattern—where price momentum weakens despite lower valuations—is the hallmark of Phase B and Phase C accumulation, a period when sellers exhaust their supply and price gradually gravitates lower amid fading selling pressure.

Delta and Aggression Decline

The recent downward movements have displayed progressively weaker sell delta. Each price push lower is occurring with noticeably less conviction from sellers. This disconnect between effort and result—sellers pushing prices down with diminishing force—typically precedes a terminal move such as a spring or major secondary test.

Divergence Signals Across RSI Components

A dual RSI framework reveals critical deviations:

• Price RSI (Purple): Tracking the directional strength of price action
• Volume RSI (Teal): Measuring momentum from volume participation

Across the most recent lows, an intriguing pattern has emerged: while Ethereum made lower price levels, the price-strength component produced higher highs and higher lows on the internal structure. Volume-strength similarly displayed rising internal swings, showing both higher highs and higher lows. This divergence is significant because it illustrates momentum decoupling from raw price. When both price-momentum and volume-momentum show strength while prices drop, it frequently indicates the market is absorbing supply rather than experiencing structural breakdown.

Volume Contraction on Downside Moves

Each successive lower push has arrived on diminishing volume. Even the bearish expansions lack the characteristic volume spike associated with true distribution or breakdown scenarios. This tapering volume behavior aligns with absorption mechanics, not aggressive continuation selling.

Current Snapshot

Ethereum (ETH) - $2.93K - Displaying technical setup consistent with early accumulation formation, with higher highs and higher lows emerging amid price challenges.