Ethereum trading action confirms bull trap at $2,550: major support level lost

Ethereum has lost the $2,550 high time frame resistance on multiple candle closes, confirming a possible bull trap. The price now risks returning to range lows, with support sitting at $2,226. Ethereum ( ETH ) has reacted bearishly from a critical high time frame conflict zone near $2,550. This level had served as a key resistance in recent weeks and was briefly reclaimed before being lost again on several candle closures—a classic indication of a bull trap formation. Rejection at this HTF level carries significant implications for the coming weeks, particularly if ETH continues to trade below this pivotal zone. Key technical points $2,550 HTF Resistance Rejection: Price closed back below this level after a brief reclaim. Bearish Confluence Zone: Includes 0.618 Fibonacci, dynamic SI resistance, and value area high. Next Major Support at $2,226: Key level where price may find liquidity and stage a potential reversal. ETHUSDT (4H) Chart, Source: TradingView After briefly reclaiming the $2,550 resistance level, Ethereum failed to sustain above it and has since closed multiple candles below. This development is technically meaningful, as $2,550 has been a well-established HTF resistance that has challenged price action for weeks. The brief reclaim followed by rejection suggests a deviation, a bearish pattern indicating failed upward momentum. The rejection from this region confirms the likelihood of a bull trap, a situation where bullish breakout signals draw in buyers, only for the price to sharply reverse below the resistance. This is not merely a local failure, but a broader technical signal suggesting Ethereum may be entering a more extended consolidation or corrective phase. You might also like: Why are Bitcoin and altcoins going down today? Several technical confluences reinforce the significance of this rejection. These include the 0.618 Fibonacci retracement from the latest swing, dynamic structural resistance (SI resistance), and the value area high from the previous trading range. The convergence of these indicators strengthens the resistance zone’s credibility and highlights the impact of the failed breakout. In the near term, Ethereum faces increased downside risk unless it reclaims $2,550, a scenario that appears less likely as the price consolidates below it. The next major level to monitor is the $2,226 support. This zone could act as a liquidity pocket and may offer a potential reversal setup for a move back toward recent highs. Until such a recovery occurs, continued downside remains the more probable outcome. What to expect in the coming price action As long as Ethereum remains below the $2,550 HTF resistance, bearish momentum will likely persist. A rotation toward the $2,226 support zone appears probable, where a short-term reversal could emerge. Read more: Bitrue opens stock trading to the 24/7 blockchain clock, but there’s a fine print