Ethereum preparing a 'bear trap' ahead of the Merge — ETH price to $4K next?

cointelegraph.com:

Ethereum's native token, Ether (ETH), continues to face downside risks in a higher interest rate environment. But one analyst believes that the token's next selloff move could turn into a bear trap as the market factors in the possible release of the Merge this coming August.

Ether's price could reach $4,000 by 2022's end, according to a technical setup shared on May 20 by Wolf, an independent market analyst.

The analyst envisioned ETH moving inside a multi-month ascending triangle pattern, which comprises a horizontal trendline resistance and rising trendline support.

Notably, ETH's latest retest of the structure's lower trendline could initiate a big rebound toward its upper trendline, which sits around the $4,000-level, as shown below. 

Wolf took his bullish cues from a similar triangle setup from 2016, whose formation preceded a major bull run from $1 to $27. Similarly, another ascending triangle occurrence in 2017 coincided with a bullish follow-up, wherein ETH/USD rose 270% to over $1,500.

Wolf's fractal-based analysis came as Preston Van Loon, one of the Ethereum core developers, confirmed that the blockchain project's much-anticipated upgrade to a proof-of-stake consensus mechanism would occur sometime in August.

Wolf noted that Ethereum was setting up a "bear trap," which would make sense prior to the upgrade, complimenting his technical setup, as discussed above.

Bear trap few months from the #merge makes sense. $ETH

The pending upgrade was one of the key catalysts behind Ether's price rally in 2021, as many investors believed it would improve the long-standing scalability problem in the Ethereum blockchain while cutting transaction and gas costs. Nonetheless, Ethereum Foundation kept delaying the launch.

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