• ETH resistance level at $3,920 could be critical for a milestone breakout.
• The king altcoin whale activity and high inflows signal bullish momentum.

Ethereum [ETH] is consolidating within a flag pattern, hinting a potential significant move. The altcoin is currently testing the critical resistance level at $3,920.

Notably, this resistance has rejected ETH five times in the past, which heightens anticipation about the next direction.

ETH is testing the $3,920 resistance level

On weekly charts, Ethereum’s current price action is a battle at the $3,920 level. The resistance level sits at the midpoint of its flag pattern. 

Historically, this level has acted as a formidable barrier, causing five straight rejections. However, the flag’s structure indicates the potential for Ethereum to break out and possibly hit a new all-time high if it is breached.

Adding to the optimism, the broader ETH market sentiment appears favorable. Data from CryptoQuant reveals increasing exchange inflows since early December, signaling heightened investor interest. 

Such inflows often precede significant market movements, further supporting the altcoin bullish outlook.

ETH whales are making moves

Also, ETH whales are making their presence felt. In fact, its large transactions have surged by over 21% in the last 24 hours alone.This  indicates that the king altcoin big players are positioning themselves for a potential milestone breakout. 

Historically, increased whale activity has often preceded significant price moves, adding weight to Ethereum’s breakout potential.

The aforementioned uptick in ETH whale activity complements the inflow data, painting a picture of growing confidence among institutional and retail investors alike.

Liquidation heatmap sparks bullish signal

Looking at the liquidation heatmap for ETH, the bias remains bullish. This aligns with the technical structure, supporting the possibility of Ethereum overcoming the $3,920 resistance level.

Read Ethereum’s [ETH] Price Prediction 2024–2025

With a bullish flag pattern, increasing exchange inflows, and surging whale activity, the altcoin seem to be  gearing up for a potential breakout.

If ETH manages to overcome the $3,920 resistance, then it could make its way towards a new all-time high.