ETH Triggers Classic Bear Trap Before Potential Breakout

• ETH repeats July 2024’s bullish breakout setup
• Bear trap likely triggered as price reverses upward
• Short sellers could push ETH price even higher

Ethereum ($ETH) is once again making headlines after executing what appears to be a textbook bear trap, just like it did in July 2024. Market watchers are pointing out eerie similarities between the current setup and the one that preceded ETH’s vertical price rally just a month ago.

A bear trap occurs when prices appear to be breaking downward, luring in short sellers, only to reverse sharply upwards. The result? Those short positions get liquidated, often triggering further price spikes as traders rush to cover their losses.

ETH’s price dipped briefly, drawing in bearish sentiment, before reversing sharply—mirroring the pattern that led to July’s explosive rally. With both bull and bear traps now executed, traders are speculating that Ethereum could be gearing up for another breakout.

Are Trapped Shorts the Catalyst?

The crypto market thrives on volatility, and trapped shorts often become a significant driver of upward momentum. When too many traders bet against the market and it moves the other way, the resulting short squeeze can send prices soaring.

Ethereum’s current price action suggests just that. After luring bears into a false breakdown, the reversal caught them off guard. If this plays out like July, we could see another strong move to the upside, potentially targeting new local highs.

What makes this setup particularly interesting is the timing. The crypto market is recovering from a short-term correction, and bullish setups like this tend to attract momentum traders and fresh liquidity. With sentiment quickly shifting from fear to FOMO (fear of missing out), ETH could be in a strong position heading into the weekend.

Momentum Builds As Setup Repeats

Just like in July, Ethereum’s structure is now favoring the bulls. The recent price reversal, volume spikes, and liquidation of shorts all signal growing strength. While nothing is guaranteed in crypto, historical setups often repeat—especially when trader behavior is predictable.

If ETH continues to mimic last month’s chart, we could be on the edge of another significant leg up.

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