ETH 4H – Potential Major Accumulation FormingWith recent price action, I am seeing what maybe an accumulation happening on the 4 hour chart, flipping my original bias from redistribution. Price is just above a major Preliminary Support level at $2450 and has been forming a large descending channel/wedge. The most recent down swing responded with a sharp wick, which aligns with the Selling Climax. Price then had an Automatic Reaction and since then has returned with a Secondary Test.
If this is correct, we may be entering Phase B of accumulation, where we can see an Upthrust move before absorption of seller continues below.
Why This Looks Like Accumulation
The market is still making lower lows in price, but the internal strength is not confirming those lows. This is typical behavior in Accumulation Phase B/C, where supply exhausts while price drifts downward.
Key supporting signals:
1. Delta Behavior
Recent down-legs have shown declining sell delta, meaning sellers are pushing price lower but with noticeably less aggression. This weakening of effort vs. result is a classic precursor to a terminal action such as a Spring or major ST.
2. Dual RSI Divergences
The RSI indicator here is split into two components:
• Purple = Relative Strength of Price
• Teal = Relative Strength of Volume
Across the most recent lows:
• Price made lower lows
• RSI-price made slightly higher highs and higher lows
• RSI-volume showed a mixed but rising structure, making both higher highs and higher lows on the internal swings
This is important because it shows momentum decoupling from price. When both price-strength and volume-strength diverge upward while price drifts downward, it often signals that the market is absorbing supply rather than breaking down structurally.
3. Volume Tapering
Each push lower has occurred on gradually diminishing volume, and even the bearish expansions lack the signature spike you typically see in distribution breaks. This behavior aligns with absorption, not aggressive continuation.
