- Ethereum cleared both bull and bear traps, trading firmly above $4,200 in a potential bullish continuation zone.
- Funding rates are low at 0.0103, contrasting with past peaks that saw leveraged long positions reach extreme levels.
- Sustaining above $4,400–$4,500 could target $4,800–$5,000, levels last reached in the late 2021 market cycle.
Ethereum is showing strong technical momentum after breaking through multiple bull and bear trap zones in recent weeks. The digital asset is trading above $4,300, a level last seen before major pullbacks earlier this year.
According to analyst Merlijn The Trader, Ethereum has moved into what he calls the “launch zone,” a phase marked by fading skepticism among most traders while early entrants hold positions for potential further gains.
His comments follow a sequence of price events where both bullish and bearish traps failed to sustain, leaving Ethereum above key resistance areas.
Trap Formations and Market Behavior
In June, Ethereum moved between support near $2,850 and resistance around $3,150. A brief breakout above this range led to a bull trap before prices fell sharply. Later that month, the asset dropped below support to $2,580, creating a bear trap that reversed quickly.
The trend changed in mid July as Ethereum surged beyond $3,600, only to form another bull trap near $4,000 when an early breakout attempt failed. The resulting pullback to $3,400 created a second bear trap, which preceded a fast recovery to current levels around $4,307.
Break Above $4,200 Strengthens Bullish Outlook
This rise has placed Ethereum above the $4,000–$4,200 range, a zone often seen as key for sustained upside. Historical market patterns show that clearing multiple trap formations can reduce uncertainty, giving way to more decisive moves.
Analysts note that maintaining levels above $4,400 could lead to resistance near $4,600. However, a rejection around current prices could send the asset back toward $3,800 or $3,600, where prior support exists. These changes show the increased volatility that continues to characterize Ethereum market environment.
Low Funding Rates Indicate Leverage is Contained
Supporting the current momentum, analyst Crypto Rover notes that Ethereum’s funding rates are notably low at 0.0103 despite the price rally. This contrasts with past market peaks in late 2021, early 2024, and mid 2025, where funding spikes preceded sharp corrections.
Low funding levels suggest that leveraged long positions are not yet at extremes, potentially allowing more upside before leverage risks emerge. If prices hold above $4,400–$4,500, targets could change toward $4,800–$5,000, a range not seen since the 2021 cycle. Funding rate changes are key, as rapid increases have historically coincided with local market tops.
