Ethereum whale buying backfires as $4B sell wall triggers bull trap

Ethereum slipped nearly 1% over 24 hours after a failed breakout turned into a bull trap.

ETH broke out of an inverse head-and-shoulders pattern in mid-January but stalled soon after.

On-chain data showed a dense cost-basis sell wall worth about $4 billion near the $3,490–$3,510 zone.

More than 1.19 million ETH were previously accumulated around $3,500, creating heavy overhead resistance.

Selling pressure intensified near $3,407 as holders attempted to exit at break-even levels.

Large Ethereum holders increased exposure following the breakout despite rising resistance.

Whale balances grew by roughly 1.04 million ETH, equivalent to nearly $3 billion in accumulation.

Whale buying failed to offset strong ETF selling pressure during the same period.

Ethereum ETFs recorded net outflows of more than $611 million in the week ending January 23.

The combination of ETF outflows and cost-basis resistance accelerated the price reversal.

Ethereum has now fallen almost 16% from its post-breakout highs.

A daily close below $2,773 would fully confirm the bull trap and expose deeper downside risk.

Bulls must reclaim $3,180 to stabilise structure and signal renewed demand.

At the time of reporting, Ethereum price was $2,871.62.