Ether could catch many bears off guard next month, with analysts eyeing a potential September correction that may fully “invalidate” by October.
“It may look bearish at first, but if it unfolds as expected, this could turn out to be the biggest bear trap I’ve ever seen,” crypto trader and analyst Johnny Woo said on Monday.
According to him, charts could form a head-and-shoulders pattern in September “to spook everyone,” only to invalidate it during “Uptober,” trapping weak-handed traders and forcing them to buy back in at higher levels.
“We’ve seen this play out plenty of times before, so it’s definitely possible,” he added.
In this scenario, Ether could dip to support around $3,350 in September before rebounding in October and rallying to a new all-time high by November.
A similar move occurred in September 2021, when ETH slid 30% from $3,950 to $2,750 before recovering to post a fresh all-time high in November.
A retest of support may be on the horizon, another analyst suggests
Trader “Daan Crypto Trades” shared on X that ETH has been “chopping everyone up” while consolidating between $4,300 and $4,500. He noted that a revisit of the range lows and the four-hour 200-day moving average, currently near $4,160, could present “an interesting spot.”
Fundamentals in focus
Henrik Andersson, chief investment officer at Apollo Capital, urged caution with overreliance on technical signals and seasonal patterns.
“In my view, it’s generally wiser to prioritize fundamental analysis over what are often spurious historical patterns,” he said.
“While past trends can sometimes offer insights, they shouldn’t be the primary basis for making predictions about market movements, especially in a dynamic and evolving space like cryptocurrency.”
“Macro factors like U.S. jobs data due Friday and the Fed’s upcoming rate decision may spark short-term volatility, but the bigger picture is structural,” OKX Singapore CEO Gracie Lin told Cointelegraph.
She highlighted that stablecoin expansion and regulatory clarity are key drivers, adding, “With Ethereum underpinning most of these flows, long-term growth depends on how these rails interconnect — regardless of this month’s headlines.”
Ether still in correction
ETH continues to pull back, slipping another 1% over the past 24 hours.
The token dropped to an intraday low of $4,238 before rebounding to $4,374 at the time of writing. It remains 11.7% below its all-time high — a milder drawdown compared with previous September declines.
