Ethereum ($ETH) just broke past the critical $4,700 mark before a sharp retrace, leaving traders asking: is this the launchpad to $5,000 or a classic bull trap? Letโs dive into the setup. โก๏ธ
๐ Key Levels to Watch
Upside: ETH must flip $4,672 into support. A clean breakout targets $4,797 (Fib level), then the psychological $4,950โ$5,000 zone. ๐
Downside: Losing support here could spark a drop to $4,550. If selling intensifies, the EMA cluster $4,372โ$4,399 becomes critical. A break below may revisit $4,300. ๐
๐ฅ Why Bulls Are Excited
Institutional FOMO: SharpLink revealed a massive $3.7B ETH reserve holding, calling ETH a โcore Web3 asset.โ
Heavy Inflows: Over $61M net inflows hit exchanges yesterday, confirming strong accumulation.
โ ๏ธ Volatility Warning
CME open interest is at record highs!
Drop below $4,350 โ risk of $1B long liquidations ๐ฅ
Break above $4,550 โ chance of $1.6B short squeeze ๐ฅ
๐ฎ Scenarios Ahead
Bullish: Hold $4,550 โ momentum targets $4,950+.
Bearish: Rejection at $4,672 โ retrace to $4,387 or lower.
๐ฏ Trading Playbook
Traders: Wait for confirmation โ retest $4,550 or break above $4,797. Use strict stop-losses.
HODLers: Any dip to $4,300s could be a golden long-term entry.
๐ Where do you think ETH is headed next? $5K breakout or bull trap? Share below!
