September Bear Trap May Set Ethereum Up for Uptober Rally
Ethereum’s price dipped from its August peak near $4,950 to below $4,300 as traders locked in profits. Technical indicators suggest this pullback might form a classic head-and-shoulders pattern in September—a potential bear trap. Analyst Johnny Woo warns that if Ethereum holds above the key support zone of $3,800–$4,100, it could invalidate the bearish setup and spark an “Uptober” rally. Other traders, including Hardy and Axel BitBlaze, highlight bullish formations like double pumps and a cup-and-handle pattern. Historical chart signals show similar reversals have fueled strong upside moves. A breakout above $5,000 may follow, setting the stage for a renewed upward trend. Traders should watch the support level and pattern validation for entry signals.
Bullish
The analysis points to a likely bullish outcome. The potential head-and-shoulders setup may act as a bear trap if Ethereum holds above the $3,800–$4,100 support zone. Historical precedents show that invalidated bearish patterns often trigger strong reversals. Combined with cup-and-handle formations and double-pump signals highlighted by traders, a breakout above $5,000 could follow in October (“Uptober”). In the short term, traders may enter on dips near support. Over the long term, a sustained rally could restore bullish momentum and attract fresh buying interest.