Ethereum Faces Another Drop to $1,200 – Bull Trap Under the Spotlight Again!

Ethereum Faces Another Drop to $1,200 – Bull Trap Under the Spotlight Again!

In recent weeks, warning signs have been appearing in the cryptocurrency market that could indicate an impending significant drop for Ethereum. According to the latest analysis by well-known analyst Leshka.eth, Ethereum’s native token – Ether (ETH) – could fall as low as $1,200 in the coming weeks, representing a drop of more than 40% from current levels.

Bull Traps That Ethereum Remembers

The analysis revealed that Ethereum is once again copying a pattern that preceded major price drops of 45% and 48% in the past. This pattern is associated with the so-called “bull trap” – a situation where the price seemingly signals an upward turn, but in reality it is a false signal that ends in a sharp decline.

The daily chart of ETH shows a supertrend setup – a simple trendline that changes color depending on the current market direction. Previous reversals in October 2025 and January 2026 showed that when the ETH price approached the upper band of the supertrend, it was followed by a sharp drop of almost half of its value.

“A similar setup is now forming at around $1,990,” notes Leshka.eth. If this key level is broken, the next target value will be the aforementioned $1,200.

Bearish trend is evident despite short-term attempts to reverse

Despite several attempts to recover and grow in recent months, Ethereum is still giving back its gains from March and the beginning of the year, while macroeconomic conditions remain unfavorable. Concerns about a recession, war in the Middle East, and geopolitical tensions in the US, Israel, and Iran are reducing investors’ willingness to take risks.

ETH has already lost over 17% of its value since the beginning of the month, and around $300 million has even flowed out of Ether-focused funds since its peak two weeks ago. Demand for ETH is at its lowest level in 16 months, and interest from holders has cooled significantly.

Weak accumulation and cautious whales

Data from the Glassnode platform shows that major whales – holders of more than 10,000 ETH – are not increasing their positions, and their balances are rather decreasing or stagnating after the peaks of late 2025. Similarly, smaller whales and sharks, who hold hundreds of ETH, are not returning to their peaks, and their activity is rather neutral or slightly negative.

Overall, the data confirms that both large and small ETH holders are cautious and do not see signals for greater accumulation. This increases the risk that if the price breaks the level around $1,990, another sharp drop may occur.

Could there be hope?

On the other hand, among the few bullish signs is the drop in Ether supply on exchanges to a decade-low and a slight increase in ETH staked volumes, which could signal that some investors are starting to accumulate this cryptocurrency token again.

Conclusion

Given the current situation and technical analysis, it is necessary to be careful. If the downward scenario comes true, Ethereum could drop to $ 1,200, which represents a significant loss for investors. On the other hand, for the brave, this decline may be an opportunity to buy at low prices - but with the knowledge that the risk of another bearish trend is still looming.

Stay tuned with us for market developments and be cautious in your investments!

*This is not an investment recommendation.

The Coingarage Team