Ethereum Bull Trap Alert: Is $4.3K Really the Best Entry Point?

Ethereum's recent surge to $4.3K has traders buzzing—but is this a genuine breakout or just another classic bull trap?

The $4.3K Question

Market sentiment's split down the middle. Some see $4.3K as a steal—others smell a setup. Remember last cycle's 'sure thing' that wasn't? Yeah, that.

Timing the Trap

Buying at resistance levels often backfires—ask anyone who FOMO'd in during previous all-time highs. The charts don't lie, but they don't offer refunds either.

Smart Money Moves

Seasoned players are watching volume, not just price. Low volume pumps scream trap—high volume confirms conviction. Your portfolio's health depends on knowing the difference.

Final Thought: In crypto, sometimes the best trade is the one you don't make—especially when traditional finance 'experts' suddenly become blockchain bulls after years of dismissal.

Key Takeaways

Ethereum is holding $4.3k. But is this resilience or the start of a volatility storm?

Ethereum [ETH] is stuck in a classic volatility trap. 

For the past two weeks, it’s been chopping around $4.27k–$4.3k, letting both bulls and bears stack liquidity and hunt for the next swing. With the long/short ratio dead even at 49-50%, the tape feels razor-thin.

In short, any big squeeze or liquidity sweep could trigger a quick move. Technically, ethereum is flashing mid-June energy. Back then, ETH held under $2.5k for two weeks before ripping 40% in 14 days.

Source: TradingView (ETH/USDT)

But there’s a key divergence this cycle.

Unlike June, when the RSI was creeping up under the chop, hinting at quiet accumulation, this time it’s dead flat. That tells us the “buy the dip” crew isn’t stacking, leaving $4.3k on shaky ground. 

In this context, rising Open Interest (OI) could be a red flag, hinting at bears fishing for stops. Against this backdrop, could Ethereum’s tense sideways chop be shaping up as a textbook bull trap?

Ethereum eyes lower liquidity sweep before bullish reversal

On Binance, ETH longs are getting crowded, with a heavy 70% skew. 

On top 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 a big contrast to mid-June, when $500 million flowed in, fueling that sharp rebound.

Down in the tape, liquidity’s stacking below $4k, with $3.97k holding $266 million in long leverage. Simply put, a sweep through this zone could trigger a nasty stop run, setting the stage for a more explosive reversal.

Source: Coinglass

Simply put, this setup is feeding the bull trap thesis for Ethereum.

Tape is flashing bearish divergence, spot demand is thin, and longs are stacked heavy, creating a textbook setup for a volatility trap that could flush weak hands before a proper bounce takes hold.

That leaves $4.3k support shaky, making a mid-June-style rip pretty unlikely if this pattern holds. In other words, ETH bulls might need a cleaner reset before they can confidently re-enter.