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According to an X post by crypto analyst CryptoGoos, Ethereum (ETH) may be nearing the end of a bear trap. The analyst predicts that the cryptocurrency could surge past its recent range high of $4,000, potentially eyeing a new all-time high (ATH) of $10,000.
Ethereum Breaking Out Of The Bear Trap?
Ethereum appears poised to break free from a potential bear trap, as the second-largest cryptocurrency by market cap continues to trade in the low $2,000 range after enduring a strong sell-off since December 2024.
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For the uninitiated, a bear trap refers to a false signal that makes it seem like an asset’s price is continuing to fall, tempting traders to short it – only for the price to suddenly reverse and rise, causing those short positions to get liquidated.
In a recent X post, CryptoGoos emphasized that ETH may be nearing the end of such a trap. The analyst shared an ETH weekly chart illustrating how the cryptocurrency could be on the brink of a trend reversal after months of relentless sell-offs.
Fellow crypto analyst Merlijn The Trader echoed CryptoGoos’ sentiment, highlighting similarities between ETH’s current price action and patterns seen in 2020. He noted that the last time this setup emerged, “panic turned into a historic rally.”
Crypto investor Rekt Capital also weighed in, pointing out that Ethereum is trading within a “historical demand area.” The investor stated:
If price can generate a strong enough reaction here, then #ETH will be able to reclaim the $2196-$3900 Macro Range (black). If ETH does this before the March Monthly Close, then this entire sub-$2200 downside would end up as a downside wick.
ETH About To Exit Accumulation Phase
Seasoned crypto commentator Ted shared a chart indicating that ETH has broken out of its short-term accumulation phase. He explained that the digital asset has been in accumulation since its drop from $3,000 to $1,800. Ted added that sustained price action above $2,000 could ignite a significant price rally.
Noted analyst Daan Crypto Trades revealed that he recently converted some of his long-term Bitcoin (BTC) holdings into ETH for the “first time in years.” He cited the current ETH/BTC trading pair as presenting an attractive risk/reward setup.
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Beyond bullish price action, several technical indicators are signaling a potential ETH rally in the near term. Notably, ETH’s weekly Relative Strength Index (RSI) recently hit a multi-year low – a sign that a trend reversal could be imminent.
However, rising ETH reserves on crypto exchanges remain a point of caution, as they could suppress bullish momentum if investors opt to sell. At press time, ETH trades at $2,029, up 7.8% in the past 24 hours.
Featured image from Unsplash, charts from X and Tradingview.com
