Ethereum’s price action may be lining up for a classic market trap.
After weeks of choppy trading near $4,300–$4,500, analysts warn that September could drag ETH lower before the tide suddenly turns in October.
Some traders see a scenario where the asset fakes a bearish breakdown, shakes out nervous holders, and then rips higher into year-end. Johnny Woo, a full-time analyst, described it as a setup that could “spook everyone before flipping into one of the biggest traps ever.” A fall toward the $3,300–$3,400 support zone is on his radar — but only as the prelude to fresh highs later in the year.
This wouldn’t be unprecedented. In 2021, Ethereum slid almost 30% in September before rebounding to set a new record by November. Observers believe history could rhyme again if October delivers the so-called “Uptober” effect.
Mixed Signals Among Traders
Others share the idea of near-term weakness, though with less drama. Market watcher Daan Crypto Trades says ETH’s range-bound action has been “chopping everyone up.” He points to the $4,160 level — aligned with the 200 four-hour moving average — as an area worth watching for a potential bounce.
Beyond the Charts
Still, not everyone buys into seasonal patterns. Apollo Capital CIO Henrik Andersson argues that chasing head-and-shoulders shapes and “September curse” narratives misses the bigger picture. He prefers focusing on Ethereum’s fundamentals: growing stablecoin flows, deeper DeFi rails, and gradual regulatory clarity.
OKX Singapore CEO Gracie Lin agrees, noting that macro catalysts like Friday’s U.S. jobs report or the Fed’s upcoming rate decision might jolt prices, but Ethereum’s long-term value will come from its role in powering digital finance infrastructure.
Current Market Position
At the time of writing, ETH trades around $4,374 after dipping to $4,238 earlier in the day. The token is down just under 12% from its all-time high — far less severe than past September drawdowns.
Whether September proves another stumbling block or simply the setup for a powerful fourth-quarter surge will be revealed soon enough. Traders, however, are already bracing for a volatile few weeks.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
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Source: https://coindoo.com/ethereum-setup-looks-bearish-until-it-doesnt/