⚠️ ETH Liquidity Trap Ahead?
Ethereum’s latest bounce may look strong, but on higher timeframes, the structure still leans bearish. This move could be setting up as a classic liquidity trap.
📊 Technical Breakdown
• Bearish Retest: ETH, like BTC, has only retested a major bearish breakdown zone on the higher timeframes.
• Liquidity Grab: The recent push upward may not represent real buying strength. Instead, it could simply be engineered to grab liquidity above key resistance levels.
• Smart Money Play: Long positions are piling in at these levels ➝ smart money absorbs liquidity ➝ market structure flips back down.
🔑 Key Levels to Watch
• Resistance Zones: $4,422 – $4,585
• Mid-level Support: $3,279
• Deeper Supports: $1,924 ➝ $1,263
• A breakdown below $3,279 could confirm the liquidity trap scenario and accelerate downside momentum.
📉 What This Means for Traders
• Be cautious with longs near resistance — risk/reward is unfavorable.
• Watch for rejection patterns around $4,400 – $4,600.
• A sustained move below $3,279 could open the door for a larger corrective leg.
👉 In short: ETH’s bounce may not be the start of a bull run, but a trap before another leg down.
