In a tweet shared on June 24, Merlijn highlighted that Ethereum’s price action had moved through the typical three phases of the Po3 pattern — accumulation, manipulation, and distribution. This pattern, often cited in institutional trading strategies, is used to describe market behavior in highly liquid assets like Ethereum.
The chart included in the post shows Ethereum consolidating in a range (accumulation), followed by a false breakdown (manipulation), and finally reclaiming the range with a sharp move upward — signaling the start of the distribution or expansion phase.
According to Merlijn, the manipulation phase has concluded, and Ethereum is now entering the expansion phase. This stage is typically characterized by strong directional momentum, which in this case, points to a bullish breakout.
“You front-run this… or you chase the breakout,” Merlijn wrote, suggesting traders prepare for a potential surge in price action rather than wait for confirmation after the move is underway.
The chart outlines a projected price move that could send Ethereum above the $3,500 level if the Po3 structure plays out fully. This would represent a significant rally from the current level around $2,386, with price regaining bullish structure after a brief liquidity sweep below $2,200.
If Ethereum maintains this reversal and enters the forecasted expansion phase, it could signal renewed strength across the altcoin market, especially if paired with increased volume and declining Bitcoin dominance.
Ethereum’s recent price structure aligns with a high-confidence Po3 setup, indicating that the recent dip may have been a manipulation event to shake out weaker hands. With the expansion phase potentially beginning, the focus now shifts to whether ETH can sustain upward momentum and push toward new local highs in the coming days.
