ETH 4H Chart: Supply Exhaustion Signals Potential Upthrust Before Accumulation Resumes

The Case for Buyers Entering

Ethereum’s recent 4-hour chart is displaying classic accumulation behavior, though price action remains challenged near the $2450 preliminary support level. What stands out most is the disconnect between price movements and underlying momentum—a hallmark of Phase B accumulation where the market absorbs seller pressure before making its next significant move upward.

The structure shows a descending channel forming, with price making progressively lower lows. However, this weakness in price is contradicted by stronger internal signals, suggesting that an upthrust could soon emerge to trap remaining short positions before buyers take control.

Why the Technical Picture Suggests Accumulation

Three key pieces of evidence point toward genuine accumulation rather than continued breakdown:

1. Weakening Selling Pressure

Each recent pullback has arrived with less aggressive selling delta. Sellers are pushing price lower, but the effort required continues to diminish—a critical warning sign for those betting on further downside. This declining force behind lower prices is exactly what precedes major reversal moves.

2. RSI Divergences Signal Momentum Building

The dual RSI components tell a compelling story:

• Price has made lower lows across recent swings
• Price-strength RSI shows slightly higher highs and higher lows
• Volume-strength RSI displays rising structure with both higher highs and higher lows

When momentum indicators refuse to confirm price weakness, it reveals that supply is being absorbed rather than decisively rejected. Traders watching this setup should pay close attention, as the upthrust move often arrives suddenly once absorption nears completion.

3. Volume Tapering Indicates Supply Drying Up

Lower price swings are consistently met with diminishing volume. Even bearish expansions lack the explosive volume spikes characteristic of genuine distribution breaks. This gradual volume compression aligns with absorption dynamics—the market grinding sideways while the narrative shifts from bearish to bullish.

What Comes Next

If this accumulation thesis holds, an upthrust into previous resistance or a sharp reversal could be imminent. The secondary test of support has already arrived; the next phase should reveal whether buyers are genuinely ready to absorb remaining supply and drive price higher on the 4-hour timeframe.

$ETH ETHUSDT Perp 2,942.01 -0.93%