Ethereum Faces A Hidden Bearish Trap At $4,100—Here Are The 2 Scenarios

Ethereum (CRYPTO: ETH) trades near $4,100 on Tuesday as price action shows signs of exhaustion at a key resistance zone. Technical indicators and flow data now warn of a possible bearish setup forming below $4,250.ETH Tests Apex Of Triangle At ResistanceETH 2-Hour Chart Analysis (Source: TradingView)The 2-hour chart shows Ethereum consolidating inside a symmetrical triangle capped by resistance between $4,200 and $4,250. This zone aligns with the descending trendline from August highs and has already triggered one rejection.Immediate support sits near $4,064 at the 100-EMA and $4,020 at the 50-EMA. A close below these levels could expose $3,900, where structural demand held firm earlier this month. Losing that base opens a measured decline toward $3,700.RSI has slipped to 48, signaling waning strength. The short-term EMA ribbon is flattening, showing that upward momentum is slowing before Ethereum can reclaim a broader uptrend.Daily Chart Adds Weight To Bearish CaseETH Daily Outlook (Source: TradingView)Ethereum trades below the mid-Bollinger band at $4,312, with firm resistance near $4,546 where the supertrend indicator caps upside.This area marks a strong rejection zone unless volume expands sharply. While the ascending trendline from April remains intact, short-term charts suggest a likely retracement before any new breakout attempt.Muted On-Chain Flows Reflect UncertaintyETH Netflows (Source: Coinglass)According to Coinglass, Ethereum recorded outflows of nearly $7 million on October 28, modest compared with earlier monthly prints.The past week has shown limited inflows or distribution, pointing to reduced institutional participation. This lack of conviction leaves near-term direction driven primarily by technical patterns rather than strong on-chain catalysts.Outlook: Bulls Need $4,250 Break To Regain ControlA daily close above $4,250 would invalidate the bearish setup and could trigger recovery toward $4,500. Until then, risk remains skewed to the downside, with $3,900 and $3,700 serving as key support zones.If sentiment improves following the Federal Reserve meeting or easing macro signals, Ethereum could retest $4,500 in a relief rally. Failure to defend $4,020 would confirm breakdown bias and shift focus toward $3,700. Consumers Feel Like It’s 2008 Again In DC As Shutdown Hits Wallets Image: Shutterstock