Ether could see the ‘biggest bear trap’ this month: Analysts

5 hours ago

Ether whitethorn instrumentality a batch of bears by astonishment adjacent month, with a deepening correction successful September that could wholly “invalidate” by the clip October comes around.

“It mightiness look bearish astatine first, but if it plays out, it could beryllium the biggest carnivore trap I’ve ever seen,” full-time crypto trader and expert Johnny Woo said connected Monday.

He added that the charts could overgarment a head-and-shoulders signifier successful September “to spook everyone,” past invalidate it successful “Uptober.” This would trap paper-handed traders, forcing them to bargain higher.

“We’ve seen this earlier plentifulness of times, truthful it’s decidedly possible,” helium added.

The script would spot Ether (ETH) falling backmost to enactment levels astatine astir $3,350 successful September earlier recovering successful October and powering to a caller all-time precocious successful November.

Something akin happened successful September 2021 erstwhile ETH fell 30% from $3,950 to $2,750 earlier recovering to people an all-time precocious successful November.

A autumn to enactment looks likely, different expert says

Fellow trader “Daan Crypto Trades” echoed that sentiment, stating connected X that ETH has conscionable been “chopping everyone up” arsenic it has been consolidating successful the mediate of the scope astir the $4,300 to $4,500 area.

He said a retest of the scope lows and four-hour 200 moving mean inclination line, which is astir $4,160, would beryllium “an absorbing spot.”

Focus connected fundamentals

Apollo Capital’s main concern officer, Henrik Andersson, was a small much skeptical of method indicators and the historically bearish September and chart patterns.

“My presumption is that it’s mostly much prudent to absorption connected cardinal investigation alternatively than relying connected what tin often beryllium spurious humanities patterns,” helium told Cointelegraph.

“While past trends tin sometimes connection insights, they shouldn’t beryllium the superior ground for making predictions astir marketplace movements, particularly successful a dynamic and evolving abstraction similar cryptocurrency.”

“Macro events similar US jobs information (out this Friday) and the Fed’s upcoming complaint determination volition apt bring short-term volatility, but the existent communicative is structural,” OKX Singapore CEO Gracie Lin told Cointelegraph.

She added that stablecoin maturation and regulations are providing much clarity, “and Ethereum powering astir of these flows, semipermanent maturation volition travel from however these rails interconnect — careless of this month’s quality cycle.”

Ether inactive correcting

ETH remains successful retreat, losing a further 1% implicit the past 24 hours.

The plus fell to an intraday debased of $4,238 earlier recovering to commercialized astatine $4,374 astatine the clip of writing. It is presently down 11.7% from its all-time high, which is overmuch shallower than erstwhile September pullbacks.