Ethereum Shows Accumulation Signals as Analysts Call Recent Dip a “Bear Trap”

• Analysts say Ethereum’s recent price drop may be a strong accumulation zone
• Some traders expect a major reversal and targets near $5,000
• Exchange supply of ETH continues to decrease, supporting upward pressure
• Market sentiment remains fearful even as ETH begins to recover

Ethereum may be entering a favorable buying range, according to several market analysts who believe the recent pullback could be temporary. After declining more than 13% over the past week and briefly falling to around $3,099, Ether has shown early signs of stabilizing. Market strategist Michaël van de Poppe noted that the dip was “a little deeper than expected,” but still sees the current price area as a strong zone for accumulation. This suggests that longer-term investors may be viewing the decline as a strategic entry point rather than a signal to exit.

Some traders believe the price movement could be part of a broader “bear trap,” where the market appears weak right before a strong reversal. Pseudonymous trader Ash Crypto suggested that Ethereum could still reach $5,000 before the end of the year, a level that is not far from where ETH traded in early October when sentiment was much stronger. While Ether has a history of more moderate performance in November compared to Bitcoin, analysts point to historical rebound patterns that often follow sharp correction phases.

Another factor supporting a possible reversal is the ongoing decrease of Ethereum available on exchanges. When supply on centralized platforms falls, it can signal that investors are choosing to hold or stake rather than trade, reducing selling pressure in the market. Some traders argue that this “supply crunch” could create the conditions needed for a strong price recovery if buying demand increases even slightly.

Sentiment around Ethereum has also started to improve on social platforms. Data from Santiment shows that discussions have shifted more positive after ETH briefly moved close to the $3,500 level again. This happened even while broader market conditions remained uncertain and overall crypto sentiment stayed in “Extreme Fear.” The contrast between fear in the wider market and growing optimism specific to Ethereum may signal that traders see ETH as undervalued at current prices.

While short-term volatility is likely to continue, analysts emphasize that Ethereum remains supported by strengthening fundamentals, decreasing liquid supply, and expectations of future upward momentum. If the market confirms the current level as a bottom, Ethereum could be positioned for one of its strongest rebounds this cycle.

Final Thought

The recent dip has sparked concern, but some analysts argue it may be presenting a rare accumulation opportunity. If buying interest returns alongside shrinking supply, Ethereum may be setting up for a significant trend reversal in the months ahead.