## Ethereum (ETH) Breaks Descending Pattern as On-Chain Accumulation Hits All-Time High

Ethereum is currently trading around $3,300, reflecting a +4.29% gain over the past 24 hours. The asset has just pierced above the upper boundary of a descending triangle formation and is now testing the critical $3,150-$3,250 resistance band. This technical breakout arrives alongside remarkably strong accumulation signals from whale wallets, which have absorbed a record amount of ETH during December despite facing intense selling headwinds.

### Whale Wallets Signal Conviction with Record December Purchases

On-chain metrics reveal that accumulation addresses—dormant wallets with zero selling history, typically representing patient capital and institutional buyers—have added 3.62 million ETH to their collective holdings throughout December. This marks the highest monthly accumulation ever recorded, surpassing November's previous record of 2.94 million ETH. The aggressive buying spree signals strong confidence among long-term holders, even as other market participants are offloading positions.

However, this optimistic accumulation story has a dark counterpart: exchange inflows surged by approximately 480,000 ETH during the same period—the largest monthly increase since June. This divergence indicates that while smart money is accumulating, others are preparing to exit or lock in profits, likely driven by year-end tax-loss harvesting strategies that typically fade after the calendar turns.

### Staking Momentum Reverses After Prolonged Weakness

The Ethereum validator queue has shifted decisively upward after languishing in decline for two consecutive months. ETH queued for validator entry has roughly doubled from 410,938 ETH (December 28 low) to 904,051 ETH as of early January, demonstrating renewed commitment to network security. This reversal coincides with major treasury accounts increasing their staking participation, further anchoring long-term demand for the asset.

### Technical Setup Suggests Further Upside to $3,470

With the $121.3 million in liquidations over the past day (predominantly short positions being wiped out), Ethereum is clearing away overhead resistance. If ETH sustains its break above the $3,150-$3,250 range, the next target extends toward $3,470. The 50-day exponential moving average (EMA) is now acting as dynamic support, and both the Relative Strength Index (RSI) and Stochastic Oscillator readings suggest bullish momentum remains intact, though the latter is already in overbought territory.

On the flip side, a failure to hold $3,150 could trigger a pullback toward the $2,900 support level, offering a lower-risk entry point for medium-term accumulators. The interplay between whale accumulation, validator participation, and technical positioning will likely determine whether this breakout holds or proves to be just another bear trap in a turbulent market cycle.