Ether may experience the biggest bear trap in history in September: experts warn of a sharp decline

Ether may experience the biggest bear trap in history in September: experts warn of a sharp decline

Crypto analysts warn that Ether (ETH) could see a dramatic decline to a support level of around $3,000 in September. This scenario could surprise many traders, as after a short-term correction, Ether will rebound sharply in October and reach new all-time highs in November.

According to Johnny Woo, an experienced trader and analyst, the September situation may look like a bear trap. "The charts could draw a 'head and shoulders' pattern that scares everyone, and then invalidate it in 'Uptober'. This would force most traders to buy at higher prices, while the decline would catch them off guard at the beginning," he explained.

According to his prediction, ETH could first fall from its current level of around $4,391 to a support level of around $3,350, similar to what happened in September 2021, when ETH fell 30% before recovering and reaching an all-time high in November.

Another analyst, Daan Crypto Trades, shares a similar view. He points out that Ether is currently consolidating between $4,300 and $4,500 and is approaching testing of minimum values, for example around $4,160, which could be an interesting point for further development.

Other experts also have opinions on technical patterns. However, Henrik Andersson of Apollo Capital points out that it is better to focus on fundamental factors than on often misleading historical patterns. "Macroeconomic events, such as US employment data or the Fed's interest rate decisions, are likely to bring short-term volatility, but long-term developments depend on structural factors," he said.

Gracie Lin of OKX, on the other hand, emphasizes that the growth of stablecoins and regulation bring greater clarity and long-term potential to Ethereum, even though it is currently still correcting. Over the past 24 hours, ETH has lost 1%, falling to a daily low of around $4,238, but quickly recovered to $4,374. It is currently more than 11% below its all-time high.

In conclusion, while technical charts suggest a possible sharp decline, more experienced analysts recommend focusing on fundamental factors and macroeconomic events that may influence market developments in the long term. Ether thus remains in a state of tension, and traders should be cautious ahead of the coming turbulence.

*This is not an investment recommendation.

The Coingarage Team