While Bitcoin (BTC) was running from record to record, Ethereum (ETH) lagged behind BTC, beating the 2021 ATH and setting up a new record a week ago.
Ethereum went above $4,900, but the subsequent bear waves have slowed the price down to the $4,200 level.
At this point, the market predicts that Ethereum can experience a $3,000 level of correction, but one analyst said this could be a huge bear trap.
Cryptocurrency analyst Johnny Wu said in an analysis from his X account that ETH could form a sharp fix or bear trap in September before it recovers in October.
According to analysts, Ethereum could surprise many bears next month, allowing them to drop to a $3,350 support level in September to create a bear trap before rebounding in October.
Noting that head and shoulder chart formation is being formed on the Ethereum chart, Woo said that this formation could first strengthen the downward trend, but ETH will experience recovery caused by the “October” trend, known historically as the upward period.
Finally, Woo noted that similar formations have been common in the past, with bearish forecasts for September and rising forecasts for October being a reasonable scenario.
*This is not investment advice.
