Analysts forecast that Ether (ETH) could surprise many traders in September with a substantial price dip to the mid-$3,000 support level before a strong recovery in October.
Crypto trader and analyst Johnny Woo highlights that this correction might initially appear bearish, but it may turn out to be the biggest bear trap in recent times.
Charts indicate a potential head-and-shoulders pattern forming in September designed to unsettle investors, which could then be invalidated in October—sometimes called “Uptober”—triggering a surge in buying activity as panicked traders get trapped.
This scenario mirrors an event in September 2021, when ETH dropped 30% from $3,950 to $2,750, only to rally to new all-time highs in November shortly after.
Potential Ether head-and-shoulders pattern. Source: Johnny Woo
Additional Analyst Insights
Another crypto trader known as “Daan Crypto Trades” echoes a bearish sentiment, noting that ETH has been consolidating between $4,300 and $4,500, leading to market uncertainty.
He points to a possible retest of $4,160 support, coinciding with the four-hour 200 moving average, which could serve as a pivotal price level in the coming weeks.
Related: Ether’s August rally may precede a September downtrend, history suggests.
Focus On Fundamentals
Henrik Andersson, Chief Investment Officer at Apollo Capital, urges caution, suggesting a focus on fundamental analysis over historical patterns, which can sometimes be misleading in the volatile crypto market.
He advises that while past trends provide some insights, investment decisions should prioritize structural market factors and fundamentals.
“While past trends can sometimes offer insights, they shouldn’t be the primary basis for making predictions about market movements, especially in a dynamic and evolving space like cryptocurrency.”
Gracie Lin, CEO of OKX Singapore, adds that upcoming macroeconomic events like US jobs data and Federal Reserve rate decisions may increase short-term volatility.
She also highlights growing clarity from stablecoin adoption and regulatory developments, emphasizing Ethereum’s critical role in powering these ecosystems, supporting long-term growth despite short-term fluctuations.
Current Market Movement
Ether continues to experience a downturn, recently dipping to an intraday low near $4,238 before bouncing back to approximately $4,374 at the time of reporting.
This correction places ETH about 11.7% below its all-time peak, reflecting a milder pullback compared to previous September drops.
ETH prices are trending downward with lower highs and lows. Source: TradingView
