Ethereum bull trap alert! Is $4.3K really the best level to buy?
Journalist
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Key Takeaways
Ethereum is holding $4.3k. However is that this resilience or the beginning of a volatility storm?
Ethereum [ETH] is caught in a traditional volatility lure.
For the previous two weeks, it’s been chopping round $4.27k–$4.3k, letting each bulls and bears stack liquidity and hunt for the following swing. With the lengthy/quick ratio lifeless even at 49-50%, the tape feels razor-thin.
In brief, any massive squeeze or liquidity sweep might set off a fast transfer. Technically, Ethereum is flashing mid-June power. Again then, ETH held below $2.5k for 2 weeks earlier than ripping 40% in 14 days.
Supply: TradingView (ETH/USDT)
However there’s a key divergence this cycle.
In contrast to June, when the RSI was creeping up below the chop, hinting at quiet accumulation, this time it’s lifeless flat. That tells us the “purchase the dip” crew isn’t stacking, leaving $4.3k on shaky floor.
On this context, rising Open Curiosity (OI) may very well be a crimson flag, hinting at bears fishing for stops. Towards this backdrop, might Ethereum’s tense sideways chop be shaping up as a textbook bull lure?
Ethereum eyes decrease liquidity sweep earlier than bullish reversal
On Binance, ETH longs are getting crowded, with a heavy 70% skew.
On prime of that, dip-buying is MIA, with Ethereum spot ETFs bleeding $96.7 million in a day, marking six straight days of outflows. That’s an enormous distinction to mid-June, when $500 million flowed in, fueling that sharp rebound.
Down within the tape, liquidity’s stacking under $4k, with $3.97k holding $266 million in lengthy leverage. Merely put, a sweep via this zone might set off a nasty cease run, setting the stage for a extra explosive reversal.
Supply: Coinglass
Merely put, this setup is feeding the bull lure thesis for Ethereum.
Tape is flashing bearish divergence, spot demand is skinny, and longs are stacked heavy, making a textbook setup for a volatility lure that would flush weak fingers earlier than a correct bounce takes maintain.
That leaves $4.3k help shaky, making a mid-June-style rip fairly unlikely if this sample holds. In different phrases, ETH bulls may want a cleaner reset earlier than they will confidently re-enter.
