Ethereum (ETH) price is flashing the same bearish warning that preceded a near 9% correction last week, with the signal reappearing on April 22.
However, underlying positioning has shifted. Whale accumulation and a flip in funding rate suggest the path this time could differ from the April 17 unwind, even though the core divergence remains intact.
Ethereum (ETH) price is flashing a regular bearish divergence for the second time in five weeks. The Relative Strength Index (RSI), a momentum indicator, peaked at 66.54 on March 16. When price pushed to a higher high on April 22, RSI failed to match that peak, leaving a lower high on the oscillator. The reading signals weakening momentum.
The same pattern appeared between March 16 and April 17. Back then, it triggered an 8.88% correction before ETH found its footing at $2,252.
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However, whale behavior looks different this time. The data suggests Ethereum whales may have begun adding supply again. Their holdings rose from 123.75 million on April 19 to 123.91 million by April 22.
In contrast, during the April 16-19 unwind, whales dumped reserves as price corrected. The shift in positioning suggests a different backdrop, though the divergence itself remains active. However, traders must keep an eye on whale positioning going ahead as this cohort as a tendency to drop reserves suddenly.
Whether funding rate and open interest confirm this shift determines whether the divergence produces another deep pullback.
The derivatives market shows a different positioning setup versus mid-April. ETH open interest sits near $12.3 billion, comparable to the reading when the April 17 divergence fired. However, Ethereum funding rate has flipped.
On April 17, funding sat at -0.003%, pointing to a short-biased market. That short-biased skew set up a squeeze dynamic. Once price reversed off the April 19 low (after the divergence played out), the trapped shorts had to cover, which helped fuel the rebound. In contrast, funding rate now sits slightly positive, implying traders are leaning long.
The shift matters. Long-biased positioning, albeit mild, facing a bearish divergence creates the opposite setup from last week. If a pullback does start, long liquidations would amplify the downside rather than squeeze shorts into a rebound. Yet funding rates remain far from the extremes needed to force an immediate squeeze in either direction.