Quick Breakdown:
- Analysts warn Ethereum could dip to $3,350 in September before staging a sharp rebound.
- ETH remains range-bound between $4,100 and $4,800, with $4,100 seen as key support.
- Traders expect October’s “Uptober” rally to drive momentum toward new highs.
Ethereum could be on the verge of a sharp correction in September, but traders suggest the downturn may only set the stage for a powerful rebound in October.
Potential Bear Trap Ahead
Crypto analyst Johnny Woo has warned that Ether’s price action might lure bearish traders into a false sense of security. According to Woo, charts could form a head-and-shoulders pattern in September to “spook everyone,” only to invalidate it in October.
“It might look bearish at first, but if it plays out, it could be the biggest bear trap I’ve ever seen,”
Woo said. He projected ETH could dip toward $3,350 in September before regaining momentum and surging to a new all-time high in November.
Here’s one possible scenario for #Ethereum $ETH #ETH:
It might look bearish at first, but if it plays out, it could be the biggest bear trap I’ve ever seen. In September, they could paint a head-and-shoulders pattern to spook everyone, then invalidate it in “Uptober,” trapping… pic.twitter.com/8aZrEJXAOx— Johnny Woo | Never DM you for Money (@j0hnnyw00) September 1, 2025
The view was echoed by fellow trader “Daan Crypto Trades,” who noted that ETH has been consolidating between $4,300 and $4,500, chopping up both bullish and bearish traders. He pointed to the $4,160 range low and the four-hour 200 moving average as a crucial support to watch.
Range-Bound Volatility and Key Levels
Other analysts highlighted Ethereum’s struggle to reclaim its 50-day simple moving average over the weekend. They argued this reflects broader market efforts to trap short-term traders before a deeper correction unfolds. As of the latest sessions, ETH continues to range within a $700 channel between $4,100 and $4,800. A decisive break below $4,100, analysts said, could trigger a higher timeframe correction aligned with September’s traditionally bearish trend.
The timing adds to the volatility: the daily, weekly, and monthly candles are all closing together, a convergence that typically increases price swings. Despite the looming correction, traders maintain that the wider structure remains bullish, with October often dubbed “Uptober” expected to flip market sentiment and extend Ethereum’s long-term uptrend.
Adding to the bullish chorus, BitMEX co-founder Arthur Hayes reiterated his long-term target, predicting Ethereum could climb as high as $20,000 before the end of the current market cycle. Hayes revealed he has re-entered the market by repurchasing ETH, arguing momentum still points firmly upward.
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