According to an X post by crypto analyst CryptoGoos, Ethereum (ETH) may be nearing the end of a bear trap. The analyst predicts that the cryptocurrency could surge past its recent range high of $4,000, potentially eyeing a new all-time high (ATH) of $10,000.

Ethereum Breaking Out Of The Bear Trap?

Ethereum appears poised to break free from a potential bear trap, as the second-largest cryptocurrency by market cap continues to trade in the low $2,000 range after enduring a strong sell-off since December 2024.

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For the uninitiated, a bear trap refers to a false signal that makes it seem like an asset’s price is continuing to fall, tempting traders to short it – only for the price to suddenly reverse and rise, causing those short positions to get liquidated.

In a recent X post, CryptoGoos emphasized that ETH may be nearing the end of such a trap. The analyst shared an ETH weekly chart illustrating how the cryptocurrency could be on the brink of a trend reversal after months of relentless sell-offs.

Fellow crypto analyst Merlijn The Trader echoed CryptoGoos’ sentiment, highlighting similarities between ETH’s current price action and patterns seen in 2020. He noted that the last time this setup emerged, “panic turned into a historic rally.”

Crypto investor Rekt Capital also weighed in, pointing out that Ethereum is trading within a “historical demand area.” The investor stated:

If price can generate a strong enough reaction here, then #ETH will be able to reclaim the $2196-$3900 Macro Range (black). If ETH does this before the March Monthly Close, then this entire sub-$2200 downside would end up as a downside wick.

ETH About To Exit Accumulation Phase

Seasoned crypto commentator Ted shared a chart indicating that ETH has broken out of its short-term accumulation phase. He explained that the digital asset has been in accumulation since its drop from $3,000 to $1,800. Ted added that sustained price action above $2,000 could ignite a significant price rally.

Noted analyst Daan Crypto Trades revealed that he recently converted some of his long-term Bitcoin (BTC) holdings into ETH for the “first time in years.” He cited the current ETH/BTC trading pair as presenting an attractive risk/reward setup.

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Beyond bullish price action, several technical indicators are signaling a potential ETH rally in the near term. Notably, ETH’s weekly Relative Strength Index (RSI) recently hit a multi-year low – a sign that a trend reversal could be imminent.

However, rising ETH reserves on crypto exchanges remain a point of caution, as they could suppress bullish momentum if investors opt to sell. At press time, ETH trades at $2,029, up 7.8% in the past 24 hours.

Featured image from Unsplash, charts from X and Tradingview.com

Bitcoin is trading below the $85K mark as the entire market struggles to hold above key demand levels. The recent sell-off has triggered panic selling and increased speculation about the future of BTC, with many investors fearing that a prolonged bear market could be on the horizon. The rapid price drop has shaken confidence, and sentiment remains deeply bearish across the crypto industry.

Key data from Coinglass reveals that BTC’s Coinbase Premium has retreated into the negative territory recently. This indicates a surge in spot selling over the past few days, which aligns with the large ETF outflows and overall bearish price action. Historically, a negative Coinbase Premium suggests that U.S. investors are offloading BTC at a discount compared to other global exchanges, reinforcing the growing fear in the market.

For Bitcoin to recover, the premium must turn positive again, signaling renewed spot demand. Until then, the market remains fragile, with analysts closely watching whether BTC can reclaim key resistance levels or if further downside is imminent. The coming days will be crucial in determining Bitcoin’s next move as investors await signs of stability amid growing uncertainty.

Bitcoin Continues To Struggle

Bitcoin is trading around $85K as the broader crypto market, particularly altcoins and meme coins, continues to face extreme selling pressure. BTC has lost critical weekly support around the $90K level, and volatility remains a key factor in short-term price action. Bulls must defend current demand zones to prevent further declines and initiate a potential recovery phase.

Crypto analyst Daan shared Coinglass data on X, revealing that BTC’s Coinbase Premium has gone into the negative zone recently. This suggests that a significant amount of spot selling has occurred over the past few days, aligning with large ETF outflows and a prevailing bearish sentiment. Historically, when the Coinbase Premium turns negative, it indicates that US-based traders are offloading BTC at a discount compared to other exchanges, reflecting a lack of confidence in short-term price action.

For Bitcoin to bounce back strongly, the Coinbase Premium must return to positive territory, signaling renewed spot demand. Currently, the premium is attempting to recover following the recent bounce, suggesting that some buying pressure is returning. However, Daan cautions that he will be monitoring this trend closely to determine whether it sustains over the coming days.

The next key resistance levels lie around $88K–$90K, and a push above these levels could confirm a bullish recovery. However, if selling pressure persists and BTC fails to reclaim lost ground, the price may continue consolidating or even drop further. The coming days will be crucial in defining Bitcoin’s next move as the market navigates ongoing volatility and uncertainty.

BTC Price Action

Bitcoin is trading at $84,900, sitting below the 200-day exponential moving average (EMA) but still holding above the 200-day moving average (MA). The price has dropped 18% since Monday, marking one of the most significant corrections of the year. Bulls are struggling to reclaim key demand levels, and market sentiment remains cautious as investors monitor price action for signs of a recovery.

If BTC holds above the $85K level in the coming days, bulls could attempt to push the price toward $88K, a short-term resistance level that needs to be reclaimed for a potential recovery rally. However, the lack of strong demand at current levels is a concern, as bearish momentum has dominated the market in recent sessions.

On the downside, a break below $85K would indicate further weakness and could lead to a deeper correction into lower demand levels. Key support areas to watch in case of a breakdown include $82K and $80K, where buyers may look to step in. The coming days will be crucial in determining whether BTC can stabilize and initiate a rebound or if further downside movement is on the horizon.

Featured image from Dall-E, chart from TradingView