Ethereum’s Rally: Bull Trap or Buying Opportunity? Trader Warns of Final Dip Before Liftoff
Ethereum's recent surge has traders divided—is this the real deal or just another headfake before a final flush?
Subheader: The Bear Case Nobody Wants to Hear
A veteran crypto trader spots troubling parallels to past bull traps. 'Markets climb walls of worry,' he admits, 'but ETH's liquidity profile screams one last shakeout.'
Subheader: The Silver Lining Playbook
True believers see any dip as a gift—institutional money waits in the wings, and staking yields still beat traditional finance's pathetic offerings. 'Wall Street will FOMO in,' predicts a DeFi founder, 'right after they finish overpaying for AI stocks.'
Closing Thought: In crypto, every 'obvious' trade gets punished. Maybe the real trap was thinking this market would ever behave rationally.
After weeks of steady decline, Ethereum is finally showing some strength, bouncing back near the $3,460 level. But not everyone is convinced the worst is over. Prominent crypto analyst Ted warns that this sudden recovery might be a “false signal,” suggesting that Ethereum could face one more big drop before a real rebound begins.
Here’s how low the ETH price can go.
Short Squeeze or Real Reversal?
While Ethereum’s recent 5% daily jump has given traders a brief sense of relief, crypto analyst Ted suggests that this move is likely driven by short liquidations rather than real buying interest.
He noted that many traders who bet against ethereum have been forced to close their positions, creating a quick price push that looks like a rally but lacks strong market support.
And the numbers back it up, over $133.83 million worth of ETH positions were liquidated, wiping out both over-leveraged longs and shorts, temporarily boosting prices. But Ted warns that this is a common trap, a short-term bounce before another drop.
Ethereum Price To Drop To $2800 Level
Despite the temporary bounce, the trader insists that Ethereum’s market structure still looks heavy. In his view, the earlier drop wasn’t the final one, just a pause before the “real move” down.
His chart highlights strong resistance zones between $3,700 and $3,800, where Ethereum has repeatedly failed to break higher. Until these levels flip into support, the market remains under bearish pressure.
But for now, Ted expects another potential drop toward the $2,900–$3,200 zone, which has acted as a key support area before.
If that level breaks, Ethereum could slide even further, possibly to around $2,800, before finding solid ground.
Key Level to Watch: $3200
For now, Ted is watching the $3,200 mark closely. Holding above it could give Ethereum’s bulls a chance to rebuild momentum. But if it slips below, another wave of selling could follow.
As of now, ETH is trading around $3446, reflecting a 5.2% jump seen in the last 24 hours
