The cryptocurrency market has been on fire over the last few days despite negative news such as the CLARITY Act failure, rising interest rates in the United States, and escalating global geopolitical tensions.

The past 24 hours have delivered even more gains, with Bitcoin (BTC) climbing past $85,000 for the first time since January, while Ethereum (ETH) hit a nine-month high of roughly $2,750. Many analysts believe the second-largest cryptocurrency is poised for a further rally in the near future, but some describe the current setup as a classic bull trap.

Don’t Pop the Champagne Yet?

At first glance, it seems like ETH’s cycle bottom is behind us and might be gearing up for a shift toward a bull run. X user DANNY, though, doesn’t support that thesis, claiming that the asset is setting up “a huge trap.”

The analyst argued that if ETH pumps to $2,670 (as it happened), sentiment will flip fast, and then people will start projecting further pumps to $4,000 and $5,000. For the X user, that level is the area where the market can trap late buyers before the real flush starts.

DANNY envisioned a slip toward $1,800, which could trigger the first real panic, followed by $1,500 and capitulation that may occur in the final months of the year. The analyst then sees an incoming reversal and a jump above $3,250 in the second or third quarter of 2027.

X user Midas also shared a pessimistic bet, maintaining that ETH has formed “a huge bearish setup.” The analyst doesn’t expect the upward move to last in the short term and forecasts a retest of the $1,700-$1,800 range.

“And if that liquidity gets swept, ETH can extend lower toward $1.4K-$1.5K. But I still don’t expect ETH to make the same kind of new cycle lows as BTC. ETH has been showing much stronger relative structure, and I still think it will outperform once this correction is finished. There is just one major downside target left to clear before the real expansion starts. So, short-term, I’m bearish on ETH. Long term this setup can become one of the strongest opportunities of the cycle ” they added.

Ted also predicted a potential correction ahead, but expects it to come once Ethereum’s price taps the $2,900-$3,000 area.

These Factors Favor the Bulls

The combination of multiple positive elements suggests ETH’s price may keep surging in the short term. As CryptoPotato recently reported, whale transactions have been climbing, showing that large holders have become increasingly active.

Ethereum’s non-empty wallets have risen to 207.17 million, with staking remaining a major reason why ETH stays parked in the long run. Just hours ago, Lookonchain revealed that a mysterious whale has sold 1,107 BTC (worth over $86 million) over the past five days, bought 34,422 ETH, and staked it all.

The solid institutional interest is another bullish factor. Although they finally registered a red week, spot ETH ETFs have attracted a lot of capital over the past few months, which could support a more substantial price rally ahead.

Not long ago, renowned analyst Ali Martinez highlighted the $2,570 level, saying a decisive breakout could open the door to a jump toward $2,700 and even $3,000. For more ETH price forecasts, check out our article here.

Source: CryptoPotato