Ethereum’s Recent Price Action Suggests Potential for Another Upward Breakout Following July’s Trap Setup

Key Points

1. Ethereum's liquidity trap setup involves a false breakout followed by a rapid reversal, creating a bull and bear trap sequence.

2. Analyst Merlijn The Trader notes Ethereum has successfully trapped both long and short traders, similar to the pattern observed in early July.

3. The recent price climb above $3,800 is driven by momentum from trapped shorts, resembling July's trap-and-breakout structure.

4. Forced buy-ins from short sellers, combined with renewed momentum and FOMO-driven buying, could fuel another strong rally like in July.

5. Ethereum's recovery above key resistance zones has created favorable conditions for continued upside potential.