ETH Breakout Real or Bull Trap?

In the latest Ethereum price prediction, analysts question whether the recent ETH USD Price technical breakout is genuine or a bull trap.

Ethereum price held steady near $3,850 during late US trading on Thursday as market desks weighed record derivatives activity against uneven spot ETF flows and mixed year-end forecasts from major banks. 

According to Coingecko data, the Ethereum price was trading at $3,836, showing a slight increase of approximately 2%, in line with Bitcoin as the broader crypto market recovered.

Data from CME showed institutional activity in its crypto suite reached fresh highs this week, with ETH options open interest around $9Bn and futures open interest hitting a record of roughly 48,600 contracts.

Leading the shift: Crypto futures and options OI is up 27% since Oct. 10 and Crypto options OI hit a record $9B 👇

🔷 ETH futures: 48.6K OI
🔷 SOL futures: 20.7K OI
🔷 XRP futures: 10.1K OI

We have the regulated tools you need ⬇️ https://t.co/lYJSklEvXH

— CME Group (@CMEGroup) October 23, 2025

EXPLORE: Now That the Bull Run is Dead, Will Powell Do Further Rate Cuts?

Could Ethereum Reach $7,500 by Year-End as Standard Chartered Predicts?

Daily tracker Farside Investors reported that on October 22, BlackRock’s ETHA fund recorded about $110.7M in inflows, while Fidelity and Grayscale logged withdrawals that pulled the group’s net balance to roughly $38M. 

The figures highlight a divided market: institutions are building exposure through regulated derivatives, yet spot ETF demand remains cautious as traders debate where Ether could end the year.

According to a Reuters report, Citi set a base target of $4,300 for Ether, warning that “current prices are above activity estimates.” 

The bank outlined a bullish scenario at $6,400 and a downside case at $2,200, depending on adoption trends and broader market conditions.

As per another Reuters report, Standard Chartered took a more optimistic view, raising its year-end target to $7,500. 

Analyst Geoff Kendrick said growing stablecoin use and staking demand could strengthen Ethereum’s fundamentals.

“We expect the stablecoin sector to grow about eightfold by the end of 2028,” he noted.

EXPLORE: The 12+ Hottest Crypto Presales to Buy Right Now

Ethereum Price Prediction: How Strong Is Ethereum’s Recovery After Multiple Rejections Near $4,100?

By late Thursday, Ether was hovering around $3,850, holding between near-term support in the $3,700 zone and resistance near $4,100. 

Traders said direction now depends on fund flows and the broader macro environment.

$ETH

Could. Not. Be. Clearer.

Connect the dots or stay broke. pic.twitter.com/Ep2nEljS8h

— Gordon (@AltcoinGordon) October 23, 2025

Technically, Ethereum’s daily chart points to a bullish shift. The price has broken above a long-term descending trendline that had capped rallies since 2021. 

This breakout signals a change in structure, turning the $3,800 level from resistance into new support.

(Source: X)

Ethereum held steady near $3,875 early Friday, rebounding from a short-term support zone around $3,860, a level closely watched by traders. 

Market analyst Crypto Tony said he is “scalping a long” while ETH stays above that area, showing confidence in a short-term bounce.

On the charts, Ethereum is retesting its breakout zone near $3,832, a typical setup before another upward move. 

Ethereum’s 4-hour chart shows the market attempting to stabilize after several failed attempts to break the $4,000–$4,100 zone. 

$ETH / $USD – Update

I am now scalping a long as we hold over $3860 support zone pic.twitter.com/KiJnsbLYID

— Crypto Tony (@CryptoTony__) October 23, 2025

The latest candles indicate a mild rebound from the weekly low near $3,720, forming what appears to be a higher low —a pattern that often signals renewed buying interest.

Momentum indicators suggest a neutral-to-slightly bullish setup, as ETH remains above its short-term support. Still, resistance is tight around $3,900–$3,920, an area where earlier rallies lost strength.

The pattern of higher lows suggests buyers are gradually regaining control. If the trend holds, a break above $4,000 could confirm the next move higher, opening the path toward the $5,000–$5,500 range.

As long as Ethereum stays above its broken trendline, sentiment remains constructive heading into 2025. 

A strong daily close above $4,000 would strengthen that outlook and mark the start of a broader uptrend.

A decisive move above that could pave the way toward $3,980–$4,020. On the downside, losing the $3,860 level could leave ETH vulnerable to another dip toward $3,740.

In short, Ethereum is still in a recovery phase. 

Bulls are trying to reclaim control, but the next move will depend on whether the price can break through near-term resistance with volume and conviction.

EXPLORE: Next 1000X Crypto – Here’s 10+ Crypto Tokens That Can Hit 1000x This Year