Ethereum News Today: "September's ETH Downturn Could Lure Traders Into a Massive Bear Trap"

Analyst predictions suggest that Ether (ETH) could experience a significant correction in September, potentially retracing to a key support level of approximately $3,350 before initiating a rebound in October. This scenario, described as a “bear trap,” is characterized by a deepening pullback that may initially appear bearish but could ultimately lead to a reversal and a new all-time high in November [1]. Full-time crypto trader and analyst Johnny Woo outlined this possibility, emphasizing that such a move could mirror a similar correction in September 2021, when ETH dropped from $3,950 to $2,750 before recovering to reach a fresh peak in November [1].

According to Woo, the expected price action could form a head-and-shoulders pattern in September, a classic bearish chart formation, followed by an invalidation of that pattern in October—marking what could be one of the largest bear traps in recent memory. This would likely spook traders holding paper positions, potentially forcing them to buy higher as the market rebounds [1]. The pattern, if confirmed, could act as a psychological and strategic turning point for ETH traders, particularly those relying on technical analysis.

Other traders have also noted signs of consolidation in the $4,300 to $4,500 range, with a retest of the $4,160 level considered a key area to watch. "Daan Crypto Trades," another prominent analyst, described the current price action as “chopping everyone up” as ETH remains in a sideways consolidation phase. A break below the four-hour 200 moving average could trigger a sharper move toward the $3,350 level [1].

Not all analysts, however, place significant weight on technical patterns. Henrik Andersson, chief investment officer at Apollo Capital, emphasized the importance of fundamental analysis over historical price patterns, noting that the cryptocurrency market is still evolving and subject to macroeconomic influences [1]. He cautioned against over-reliance on chart patterns, particularly those observed during historically bearish months like September.

Gracie Lin, CEO of OKX Singapore, echoed this sentiment, highlighting that while short-term volatility could be driven by macro events—such as upcoming U.S. jobs data and the Federal Reserve’s rate decision—the broader narrative remains structural. Lin pointed to factors such as stablecoin growth and regulatory clarity as key drivers of Ethereum’s long-term performance [1].

Currently, ETH remains in a downtrend, having fallen to an intraday low of $4,238 before recovering to $4,374 in recent trading. The asset is still down 11.7% from its all-time high, though this pullback appears less severe compared to previous September corrections [1]. Technical indicators show lower highs and lower lows, signaling ongoing consolidation.

Source: [1] Ether could see the 'biggest bear trap' this month: Analysts (https://cointelegraph.com/news/ether-headed-biggest-bear-trap-september-analysts)