$ETH

The recent sharp increase in ETH, followed by a slow decline, has raised concerns about a potential trap for bulls. The rise may have been driven by short-term speculation fueled by optimism regarding ETF approval and a broader market recovery. However, the subsequent lack of continuation, especially when Bitcoin remains strong, hints at a weakening momentum. This pattern often lures late buyers who believe a sustainable upward trend is forming, only to reverse when early buyers take profits. If Ethereum fails to reclaim the key resistance level around $1,750 with significant volume, it may confirm a bearish divergence. While the fundamentals remain unchanged in the long term, traders should exercise caution — watch for confirmation signals and volume trends before entering. This could still be a phase of a shakeout.

Is the sharp increase in $ETH a trap for bulls?