Ethereum Whales Fell Into a $4 Billion Bull Trap: What’s Next for ETH Price?

Ethereum experienced a significant correction of nearly 16% after breaking out from an inverse head-and-shoulders pattern in mid-January, turning the rally into a classic bull trap. The failure was attributed to a dense cost-basis wall between $3,490 and $3,510, representing about $4.1 billion in supply, where holders sold to break even, absorbing demand.

ETH whales accumulated nearly 1.04 million ETH (about $3 billion) post-breakout, averaging down even as the price fell, indicating they were trapped by the sudden resistance. This on-chain accumulation was countered by external market pressure, specifically a reversal in U.S. spot ETF flows, which recorded $611.17 million in net outflows the week ending January 23, adding directional selling pressure.

For the immediate future, Ethereum's structure is weak. A daily close below $2,773 would confirm the bull trap and threaten lower support zones. On the upside, recovery requires reclaiming $3,046 and subsequently breaking the major supply wall around $3,180, though the dominant resistance remains near the $3,407-$3,487 zone that caused the initial rejection.

(Source：BeInCrypto)