Ethereum Nears $4,500: Breakout or Range-Bound Trap

- ETH nears $4,500 but faces muted futures leverage. - Traders debate potential breakout as RSI diverges bullishly. On September 3, 2025, Cointelegraph reported that Ether (ETH) climbed near $4,500 amid bullish spot demand, sparking a debate over a potential breakout or continued range-bound movement. Organic buying in spot markets, not leveraged activity in futures markets, primarily fueled the rise after ETH swept liquidity around the $4,200 level. Consequently, traders now face the critical question: does this rally mark a decisive breakout or a “fakeout” within its established trading range? Technical analysis suggests a daily close above the $4,500 mark is essential for Ethereum to sustain upward momentum. Achieving this level could lead to further gains toward external liquidity zones between $4,800 and $5,000. Conversely, failing to hold above $4,500 may prompt a retracement to price levels below $4,100. Several bullish signals suggest upside potential. A positive divergence between the price and the relative strength index (RSI) on the four-hour chart supports this outlook. In addition, ETH has broken out above a two-week falling wedge pattern, a key technical indicator that often heralds further price gains. Despite these promising signals, some bearish factors remain. Leveraged traders appear hesitant, as shown by the lack of a meaningful increase in Ether futures open interest during the rally. Additionally, CryptoQuant data highlights persistent sell-side pressure, with the net taker volume for ETH on Binance remaining negative since August. While altcoin markets show increasing enthusiasm, ETH has not yet become a focal point for speculative investment activity. As of September 3 at 22:08 UTC, Ethereum (ETH) was trading at $4,478.49, and its 24-hour trading volume had increased by 3.71%, according to CoinMarketCap.