Ethereum Price Forecast: ETH resumes quest to tackle $4,093 resistance as investors begin accumulation

Ethereum price today: $3,670

• Ethereum investors withdrew over 80K ETH from exchanges last week.
• ETH market sentiment is weak despite its recent price appreciation.
• Ethereum could rally above $4,093 to tackle its all-time high resistance after posting an inverted H&S pattern on the weekly chart.

Ethereum (ETH) briefly traded above $3,700 on Monday following a slight increase in accumulation among investors last week. If the accumulation trend continues, ETH could validate an inverted head and shoulders (H&S) pattern by rallying above the $4,093 resistance.

Ethereum investors begin accumulation despite weak sentiment

In anticipation of the crypto market having a positive January similar to the past two years, Ethereum investors transferred over 80K ETH worth nearly $300 million off exchanges to private wallets last week, per CryptoQuant's data. The move signifies a bias toward accumulation as investors return to the market in full swing this week.

ETH Exchange Reserve. Source: CryptoQuant

Specifically, most of the accumulation activity came from entities holding between 1K and 10K ETH. However, whales holding between 10K and 100K ETH shed portions of their holdings.

ETH Supply Distribution. Source: Santiment

Despite the accumulation, ETH's Weighted Sentiment is in a downtrend, signifying that most social mentions surrounding the top altcoin are slightly bearish. ETH could continue its rise in the coming days as prices tend to move in the opposite direction of retail sentiment, according to crypto analytics platform Santiment.

ETH Weighted sentiment. Source: Santiment

Additionally, the United States (US) jobs report on Friday is a key market mover to monitor as ETH's price and the crypto market take shape in 2025.

Meanwhile, Ethereum ETFs recorded net outflows of $38.1 million last week, per Coinglass data.

Ethereum Price Forecast: ETH could smash $4,093 if the inverted H&S pattern holds

Ethereum is up 2% after seeing futures liquidations worth $39.24 million in the past 24 hours. The total amount of liquidated long positions is $10.79 million and short liquidations accounted for $28.45 million, per Coinglass data.

On the weekly chart, Ethereum appears to be following an inverted H&S pattern after finding support near the 50-day Simple Moving Average (SMA) during a brief correction in December.

ETH/USDT daily chart

With ETH rising above the resistance near $3,550 last week, it could break the $4,093 neckline resistance of the inverted H&S pattern in the coming days. A firm breakthrough above this resistance, which has stood since March, may propel ETH to surpass its all-time high of $4,868.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) momentum indicators are above their neutral levels, signaling dominant bullish momentum.

A weekly candlestick close below the $3,000 psychological level will invalidate the bullish thesis.