Ethereum bear trap? Three major bullish reversal signals reveal long positions opportunities.

Ethereum (ETH) has recently experienced price fluctuations, sparking intense discussions in the market about the "bear trap." Can ETH break through the $4,000 mark, or are we about to face a new wave of collapse? Although it has fallen over 2% in the past 7 days, currently priced at around $3,681, on-chain data and technical indicators reveal distinctly different signals — this may be a carefully orchestrated short positions trap, with long positions opportunities quietly brewing.

1. Whales and retail investors are increasing their holdings together, the distribution of funds hides secrets

The latest on-chain data shows that in the past 30 days, ETH whale holdings have increased by 1.82%, while retail wallets have also grown by 1.87%. Interestingly, middle-class investors have chosen to reduce their positions, with assets accelerating towards both ends. This extreme distribution often signals that major funds are positioning themselves, and ordinary investors are following in the footsteps of the whales, laying the groundwork for a rebound in the market.

2. Long positions overwhelm short positions, market sentiment leans towards accumulation

IntoTheBlock data further confirms the bullish trend. Over the past 7 days, the number of long positions wallets has outnumbered short positions by a ratio of 7:1, indicating that market participants still tend to accumulate rather than distribute. In addition, the ETH long-short account ratio on the Binance platform has reached as high as 1.91, meaning that long users are nearly twice as many as short users. Historical experience tells us that such ratios often appear before the market is about to experience significant volatility.

3. The ascending triangle pattern is solid, and the key support rebound triggers short positions liquidation

From a technical analysis perspective, the ETH daily chart has formed a strong ascending triangle structure. Although the $3,785 support was briefly broken, it quickly rebounded, triggering a large number of short positions to be liquidated. As long as the daily close can return above $3,785, ETH is expected to test the resistance levels of $3,939 and even $4,051, leading to a significant breakout. Conversely, if the $3,356 support is thoroughly breached, the short-term bullish scenario will be declared invalid.

Conclusion

Despite the recent pressure on ETH prices, three bullish reversal signals suggest that the so-called "bear trap" may just be a smokescreen for institutional capital accumulation. Whales and retail investors are increasing their holdings simultaneously, long positions dominate, and the technical ascending triangle structure provides a solid foundation for ETH's next rebound. Investors should closely monitor key support and resistance levels, seize potential long opportunities, and remain alert to the risks posed by sudden market changes.