- Ethereum repeats the July pattern with bull and bear traps, setting stage for a potential vertical rally.
- Price holds above $3,500 as technicals suggest breakout could target $6,800 to $9,000 in mid-term.
- Institutional accumulation and rising social interest support Ethereum’s bullish continuation outlook.
Ethereum (ETH) appears to have repeated a price pattern similar to its July breakout setup. Bull and bear traps were clearly visible around support and resistance levels. The latest price bounce above $3,500 now aligns with technical signs of another potential vertical move. ETH is trading at $3,832 at the time of writing.
Bull and Bear Traps Set the Stage for Potential Rally
Ethereum executed both a bull trap and a bear trap in recent weeks, according to an analysis prepared by Merlijn The Trader. A brief breakout above resistance in June was followed by a quick reversal. Shortly after, the price dropped below support near $3,400, forming a bear trap before rebounding strongly.
This price behavior mirrors what occurred in July, where similar trap patterns preceded a vertical rally. Crypto analyst TommyJR confirmed that Ethereum has formed a higher low near the $3,500 level, which he considers key for validating the bullish structure. He also noted a recent mini flag breakout that supports the trend continuation toward $4,000.
Technical analyst Gert van Lagen also identified a falling wedge pattern, which suggests a 79% potential rally from recent levels. If this projection plays out, Ethereum could target a price range between $6,800 and $9,000 in the medium term.
Institutional Buying and Whale Accumulation Continue
Institutional interest in Ethereum continues to build. According to Whale Alert, large ETH transfers from Coinbase and OKEX totaled over $188 million recently. Additionally, BlackRock acquired 23,874 ETH worth $88.8 million, signaling growing institutional confidence.
CoinMarketCap data shows Ethereum’s market cap remains strong, while Santiment reports Ethereum’s social dominance now stands at 11.41%. This reflects increased market attention during a period of consolidation.
Meanwhile, the SEC’s recent stance on liquid staking has eased some regulatory concerns. According to AshCrypto, ETH is now breaking out of a bullish wedge, with resistance at $4,100 and support at $3,550. If the $3,500 level continues to hold, the next leg higher may soon begin.
