Ethereum risks ‘bull trap’ after 25% ETH price rebound By Cointelegraph


Ethereum risks ‘bull trap’ after 25% ETH price rebound

Ethereum’s token Ether (ETH) could be entering a “bull trap” zone after rebounding back above the $1,000 mark from 18-month lows of $885.

The first among these indicators is a “rising wedge,” a classic bearish reversal setup that forms after the price trends upward inside a range defined by two ascending but converging trendlines. The wedge setup gains further confirmation if the trading volume drops alongside the rising prices.

four-hour price chart featuring ‘rising wedge’ setup. Source: TradingView
Flow of Asset. Source: CoinShares
Ether options open interest by strike price. Source: Coinglass