Uptober Incoming? Why September’s Ethereum (ETH) Chart Could Fool Everyone

Ethereum’s (ETH) momentum has stalled, with the token tumbling from its August record of $4,950 to under $4,300. The decline reflects investors shifting focus to securing profits after the recent rally, as the overall sentiment appears to have extended into September.

But ETH’s bearish setup may not be what it seems, and traders fearing the altcoin’s September breakdown may regret it.

Greatest Bear Trap

Ethereum may be on the verge of what some analysts call the “biggest bear trap” this month.

In his latest post on X, crypto trader and analyst Johnny Woo warned that Ether could appear bearish in September by forming a head-and-shoulders pattern, which happens to be a classic signal of potential downside.

However, if invalidated, this setup could flip sentiment in October, known in crypto circles as “Uptober,” forcing sidelined traders to buy back in at higher levels. Such pattern-driven reversals have occurred before, and have now fueled speculation about Ethereum’s next decisive move.

Woo also went on to highlight the critical support zone for Ethereum, as he noted that the $3,800 to $4,100 range is an area to watch closely. According to the analyst, this level has become increasingly significant for traders. If the altcoin manages to hold above this level, it could strengthen bullish sentiment, while a breakdown might open the door for further downside pressure.

Bullish Setup

Crypto trader Hardy also expressed strong bullish sentiment on Ethereum, and tweeted that the asset looks “ready to PUUMP” with an imminent breakout ahead. He suggested that, based on its previous price action, Ethereum could deliver a “double pump” move.

Meanwhile, another popular market watcher, Axel BitBlaze, said that ETH’s setup looks primed for another breakout. He highlighted a cup-and-handle formation alongside two powerful pumps, each retracing before fueling further upside. With the market now on pause, BitBlaze believes that a potential third move could be the most aggressive yet, possibly catapulting ETH above the $5,000 mark.