Johnny Woo, an analyst at Odaily Planet Daily, said: "ETH may be bearish at first, but if the trend develops as expected, this may be the biggest bear trap I have ever seen."

He added that the chart shows that ETH may form a "head and shoulders" pattern in September and then be broken out of it during the "October rally." In this scenario, ETH may fall back to the support level of about $3,350 in September before rebounding in October and hitting a new all-time high in November.

A similar situation occurred in September 2021, when ETH fell 30% from $3,950 to $2,750, before rebounding to a record high in November. (Cointelegraph)