Ethereum is holding above $3,100 as a technical pattern suggests accumulation may be nearing completion. The cryptocurrency has traded flat over 24 hours while posting a 2.6% gain across the past week, with price action compressed near levels where breakouts historically form.

What Happened: Technical Formation

Ethereum appears to be consolidating within a bull flag pattern, a formation that occurs when price pauses in a narrow range following a strong upward move.

The structure remains valid as long as ETH holds above $3,090, with repeated bounces from this zone indicating buyers continue defending support.

A daily close above $3,130 would mark the first confirmation that the consolidation phase is ending. Price has absorbed selling pressure during recent pullbacks without breaking below key support, suggesting strength rather than exhaustion despite the sideways movement.

Also Read: Technical Indicators Signal Downside Risk for XRP Following $2.00 Break

Why It Matters: Distribution Slowing

On-chain data shows Ethereum holders distributed approximately 958,771 ETH on Dec. 12, but net selling declined to roughly 877,958 ETH by Dec. 13.

This represents an 8.4% reduction in selling pressure within 24 hours, a shift that typically appears during late-stage consolidation rather than breakdowns.

The easing distribution near resistance without price deterioration increases the probability of buyer participation once a breakout confirms. If Ethereum secures a close above $3,130, the next resistance sits near $3,390, with a measured move from the bull flag structure targeting the $4,000-$4,020 area.

A close below $3,090 would weaken the bullish structure, while a drop under $2,910 would invalidate the pattern completely.

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