Ethereum bulls could fail due to this crucial reversal.

Ethereum's price recently broke out of an ascending triangle pattern, indicating new upward momentum.

However, this upward momentum now appears vulnerable. ETH has shown a bearish divergence for almost three weeks, raising concerns that the trend is not entirely convincing.

Major Ethereum investors are pulling out.

Ethereum has shown a clear bearish divergence over the past three weeks, indicating weakening intrinsic strength. While ETH price has consistently reached new highs, the Chaikin Money Flow indicator has been trending downwards, creating higher Dip . This signals a price increase but one accompanied by withdrawals from the market rather than sustainable inflows.

This type of divergence is often a harbinger of a trend reversal. Investors appear to be distributing ETH to take profits during strong price movements instead of buying more. As Capital withdraws during a price increase, the upward momentum weakens. This increases the likelihood of a failed breakout, especially in the context of a generally cautious cryptocurrency market.

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Macroeconomic data also reinforces the weakening signals from momentum indicators. Ethereum whales have intensified their selling over the past week. According to on-chain data, wallets holding between 100,000 and 1 million ETH have sold over 230,000 ETH.

This sales volume is equivalent to approximately $760 million at current prices. The withdrawal of funds by large investors coincides with a declining CMF indicator, confirming weakening confidence in the market among major investors. When large investors Dump their holdings during a price breakout, the price's resilience decreases, increasing the risk of a sharp decline in the short term.

The price of ETH may be facing a risk of decline.

At the time of writing, Ethereum is trading around $3,309, just above the $3,287 support level. The recent triangle breakout could theoretically have led to a 29.5% price increase, targeting $4,240. However, the recent downward trend and bearish divergence may no longer hold true for this bullish scenario.

Given the current situation, ETH is highly likely to lose the support level of $3,287. If this happens, the price of ETH could fall close to the $3,131 region, confirming that the breakout was only a false breakout. At that point, selling pressure will increase, and the price could easily correct further below $3,000.

However, a sharp decline is not guaranteed. If ETH holds above $3,287 and whales stop selling, upward momentum could return.

Holding this support level, Ethereum could head towards the $3,441 region. If the upward momentum strengthens, the price could even extend to $3,802, thereby breaking the current negative scenario.