Ethereum (ETH) has surged for two consecutive days, now testing the critical $3,870 resistance level. However, on-chain data reveals silent whale sell-offs, and sell orders are outweighing buys—hinting at a possible short-term bull trap.
Technically, $3,870 marks the upper limit of both the Bollinger Bands and the high-volume VPVR zone. Just above lies the $3,879–$3,888 low-volume node (LVN)—a “liquidity void.” Without strong buying volume, ETH risks a rapid drop toward the $3,626 point of control (POC), which saw the highest 2-week volume (2.18M ETH) and serves as the bulls’ last defense.
Momentum-wise, RSI has hit 73, and price is over 86% of the Bollinger Band—signaling short-term overbought conditions. Although 22.5k ETH flowed into contracts over the last 4 hours, open interest barely rose (+3.75%), suggesting the move may be a fake breakout.
For trading:
Aggressive bulls can long on a pullback to $3,626–$3,640, with stop at $3,580.
Conservative bulls should wait for a confirmed breakout above $3,900 with strong volume.
If ETH shows a long upper wick and high sell volume near $3,870, a light short position targeting $3,760 with stop at $3,905 is an option.
📌 Conclusion: ETH is at a key turning point. A breakout targets $3,950; a failure may lead to a sharp pullback. Manage risk carefully in the short term.
