Ethereum’s price action on the weekly ETH/USD perpetual chart is aligning closely with the Wyckoff accumulation theory. After a period of distribution and markdown, Ethereum appears to have entered a multi-year accumulation phase.
The early structure shows a Selling Climax (SC) followed by an Automatic Rally (AR), establishing a clear upper boundary. Secondary Tests (ST) near the lows confirm absorption of selling pressure by stronger holders.
As ETH moved through Phase B, sideways trading with repeated swings between support and resistance dominated the chart. These fluctuations were not random; they shook out weaker investors while allowing institutional buyers to accumulate without triggering a breakout. Analysts note that this pattern reflects diminishing supply and growing demand absorption over time, setting the stage for the next phase.
Wyckoff Phase C Marks Key Last Point of Support
The Phase C in the Wyckoff strategy identified an essential Last Point of Support or LPS. Here, it can be observed that the LPS hinted that the sellers were almost exhausted, and the large buyers were encouraging higher lows. The resulting rally from this LPS pushed Ethereum towards the higher end of the accumulation chart.
Currently, in Phase D, ETH’s LPS increases with smaller corrections, indicating greater buyer confidence. A Sign of Strength near the resistance level might indicate a definite breakout where buyers overwhelm sellers.
According to analysts, pushing through $4,800 would confirm the bullish continuation pattern and trigger Phase E, which is indeed the markup phase. In Phase E, ETH’s price may increase with better momentum, reflecting accumulation over several years from 2022-2023.
Macro Liquidity Drives Ethereum’s Short-Term Moves
The macros remain important for ETH in the short term. As cited by Milk Road, the largest drops seen by Ethereum each quarter are normally witnessed during global tightening cycles and rate stress, and not due to cryptocurrency issues, which occurred in 2018, 2022, and 2025. It essentially represents a high beta tech stock.
Ethereum basics appear stronger based on on-chain data. The Total Value Locked (TVL) in Ethereum continues to rise, with increasing capital inflows from stablecoins, Treasuries, real-world assets, and asset management platforms.
Increasing capital infusion makes Ethereum’s collateral stronger, provides a constant source of demand for block space, and helps establish a stronger price floor for ETH. As non-speculative funds increase, it makes Ethereum stronger in both bull and bear markets.
Also Read: Can Ethereum (ETH) Reach $5,000 by January 2026? Three Factors to Watch
