Ethereum Price Prediction: Is a Bear Trap Capable of Launching ETH Back to $2,700?
The American session has just commenced, which could either worsen the decline or propel ETH back to key levels, as the price action suggests a potential bear trap.
In the last day, almost $1 billion in long positions have been eliminated from the crypto market. Since late February, when the market was rapidly declining in the post-Trump-election bear market, this is the highest recorded single-day amount.
Out of that total, ETH longs account for $250 million, which is only $50 million less than BTC. This underscores the leverage of this market, given that a 5% drop within 24 hours typically does not cause such substantial suffering for traders.
Even after the wipe-out, the long-short ratio of ETHUSDT accounts on Binance currently stands at 2. Even though this remains an extreme level signifying a heavily ‘one-sided’ market urgently needing correction, the metric has decreased from a previous high of 2.77 on May 18.
In such a scenario, the risk of a significant pullback rises, as market makers may try to balance their order books by eliminating excess long positions.
This could set off a significant long squeeze, particularly if specific crucial levels are reached.
At this juncture, this could evolve into a liquidity search for market makers to locate the majority of ETH longs. By blowing up a ton of long orders, they could trigger a sizable correction if they manage to press the right keys.
ETH Enters Consolidation After Strong Uptrend
Ethereum has clearly entered a stage of consolidation as the market needs a pause after the latest rally to determine where it should be heading next
Ethereum Outlook: Bullish Catalysts vs. Macroeconomic Headwinds
The upcoming Pectra upgrade and a rapid sentiment shift from Extreme Fear to Greed are reinforcing a bullish case for Ethereum (ETH). This shift, paired with strong fundamentals, suggests growing investor confidence in ETH’s near-term prospects.
However, geopolitical tensions—particularly between the U.S. and China over trade—pose significant macroeconomic risks. Any breakdown in negotiations could dampen economic outlooks, weighing on risk assets including crypto.
Technical Setup: Consolidation Precedes Decision
ETH is currently in a consolidation phase. While such patterns are neutral, they often precede sharp directional moves. The eventual breakout—bullish or bearish—will confirm the market’s next step following a period of accumulation.
If bullish momentum resumes, investors could continue accumulating ETH, especially if new catalysts emerge. Conversely, deteriorating macro conditions could lead to selling pressure.
Bear Trap Could Spark Rally to $2,700
Zooming into lower timeframes, the ETH/USD hourly chart reveals a possible bear trap. The recent drop below $2,450 triggered liquidations, indicating many long positions were wiped out. However, this move was quickly absorbed by strong buying at the $2,400 level—a key psychological and technical support zone.
This area represents a critical order block to monitor. For the trend to turn decisively bullish, ETH must reclaim the $2,600 level, which also aligns with the 200-period EMA on the hourly chart.
Should the bear trap generate enough liquidity to drive ETH past this resistance, a rally toward $2,700 becomes increasingly likely.
Disclaimer and Risk Warning
coinweck does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. The image used in this article is for informational purposes only and is provided to us by a third party. coinweck should not be held responsible for image copyright issues. Contact us if you have any issues or concerns. Readers should do their research before taking any actions related to the company.