Ether’s Potential Surprise in October
Ether may catch many bears off guard next month, as a deepening correction in September could completely “invalidate” itself by the time October arrives.
“It might look bearish at first, but if it plays out, it could be the biggest bear trap I’ve ever seen,” said full-time crypto trader and analyst Johnny Woo on Monday.
He noted that the charts might form a head-and-shoulders pattern this September “to spook everyone,” only to invalidate it in “Uptober.” This scenario would trap paper-handed traders, compelling them to buy at higher prices.
“We’ve seen this before plenty of times, so it’s definitely possible,” he added.
This scenario would see Ether (ETH) retreating to support levels around $3,350 in September before bouncing back in October, potentially reaching a new all-time high in November.
A similar situation occurred in September 2021 when ETH experienced a 30% drop from $3,950 to $2,750 before recovering to set an all-time high in November.
Fellow trader “Daan Crypto Trades” mirrored this sentiment, stating on X that ETH has been “chopping everyone up” as it consolidates within the $4,300 to $4,500 range.
He suggested that a retest of the range lows and the four-hour 200 moving average trend line, near $4,160, would be “an interesting spot.”
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Apollo Capital’s chief investment officer, Henrik Andersson, expressed a bit more skepticism regarding technical indicators, especially given the historically bearish nature of September and chart patterns.
“My view is that it’s generally more prudent to focus on fundamental analysis rather than relying on what can often be spurious historical patterns,” he said.
“Macro events such as US jobs data (scheduled for release this Friday) and the Fed’s upcoming rate decision will likely lead to short-term volatility, but the real story is structural,” commented OKX Singapore CEO Gracie Lin.
She added that stablecoin growth and regulation are bringing greater clarity, and with Ethereum facilitating most of these transactions, long-term growth will depend on how these structures interconnect—regardless of this month’s news cycle.
ETH continues to decline, with a further 1% loss over the past 24 hours.
The asset dipped to an intraday low of $4,238 before recovering to trade at $4,374 at the time of this writing. It is currently down 11.7% from its all-time high, which is a considerably milder decrease compared to previous September pullbacks.
