Ethereum price could continue rising higher as retail bears have recently been lured into a smart money trap
Ethereum price traps retail bears
Ethereum price is peculiar as a 10% rally occurred hours after the bears breached the September lows. The decentralized smart contract token dropped penny-from-Eiffel style into the previous month’s bottom after the US CPI data was released. The sharp move back up was a clear bear trap in retrospect, and the trapped bears will likely play a significant role on ETH’s future price action.
Ethereum price auctions at $1,300 as the bulls are testing the. The 8-day exponential moving average as support after being rejected 21-day simple moving average. The Relative Strength Index still has space to rise and is now hovering above justifiable bullish-entry territory. Furthermore, there haven’t been any recent divergences suggesting the countertrend rallies’ ingenuity. In the coming days, bears clinging to their CPI-induced shorts may face a substantial challenge.
If the technicals are correct, there is a strong probability of a rally to $1,370. The countertrend rally should continue as long as the $1,255 liquidity level holds. If the bears do manage to breach $1,255, the uptrend idea would be void. The bears could continue treading south, with a high chance of sweeping the summertime lows at $880. Such a move would result in a 32% decline from the current Ethereum price.