Ethereum: Bear Trap or Long-Term Decline? Analysts Weigh In
Ethereum’s recent decline may actually be a textbook bear trap, say analysts who view the current price range as a prime accumulation zone. The second-largest cryptocurrency by market cap continues to test investor confidence amid heightened volatility across digital-asset markets.
Analysts see accumulation opportunity
Michaël van de Poppe, founder of MN Trading Capital, acknowledged that Ethereum’s pullback was “a bit deeper than expected,” but still considers it an attractive level to build long positions. He emphasized that macro conditions remain supportive for a mid-term rebound as liquidity returns to risk assets and capital rotation favors altcoins.
Prominent trader Ash Crypto also described the recent move as “a massive bear trap,” expressing optimism that Ethereum could reach $5 000 by the end of the year. According to him, the current market structure shows exhaustion among short-sellers and increasing accumulation on major exchanges.
Market sentiment divided
Despite these bullish views, sentiment across derivatives markets remains cautious. Funding rates on major exchanges have turned neutral, while open interest in Ethereum futures declined by 8 % over the week — a sign that leverage traders are taking a wait-and-see approach. Technical analysts note that the $2 900–$3 100 range remains the key area to watch: a breakout could reignite momentum, while a breakdown might confirm a longer consolidation phase.
Outlook for investors
Experts agree that Ethereum’s long-term narrative — driven by network upgrades, scaling solutions, and institutional adoption — remains intact. Whether the current pullback is a final shake-out or the start of a broader correction will depend on Bitcoin’s stability and macroeconomic signals from the U.S. Federal Reserve. For now, analysts advise traders to remain patient and focus on gradual accumulation rather than short-term speculation.
Editorial Team — CoinBotLab