Ethereum’s 19% Fakeout: Bulls vs. Bears 🐂📉

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Verily, the most cruel deception of recent weeks hath befallen Ethereum, a trick so cunning it might have made even the devil himself blink. The bulls, those valiant warriors of the market, fancied they beheld a breakout, a glorious ascent towards the heavens of resistance levels-50 EMA, 100 EMA, and the general downtrend structure, as if the very stars had conspired to grant them victory. Yet lo, the price fell like a stone, a cruel jest that left the hopeful in disarray.

Ethereum’s price review

Nay, the price of ETH was struck down with the swiftness of a thunderbolt, rebounding beneath the sacred averages and recoiling near $3,500. Such a move, though seemingly haphazard, is a calculated test of market resolve, a liquidity grab wrapped in the guise of a stumble. The subtlety lies in this: such a fakeout oft occurs near the end of a rally, not its beginning, clearing stop-losses like a scythe through wheat and exposing the weak-willed, driving out the impatient with the ferocity of a storm.

Yet, this very act of defiance also weighs upon the bears, for if ETH maintains its higher-low structure post-rejection, it speaks of demand as robust as a fortress. The price now hovers near the mid-$3,100s, just above the realm where the previous 10-day ascent began. A critical juncture, indeed.

Even if buyers defend this line, the broader structure still whispers of continuation. No mass exodus, but a mere pullback after overextension; the RSI remains neutral, as if a passive observer, and the volume betrays no panic, only the calm of a seasoned general.

Two scenarios

Scenario 1: Rally continues

Should ETH stabilize above $3,100 and begin its slow, grinding ascent toward the 50 EMA, the market may attempt another push past $3,450-$3,500. To break that threshold would open the gates to the psychological $4,000 zone, a path paved for a more extensive reversal. Then, the fakeout transforms into a spring, a classic setup for a prolonged bullish leg-like a dancer leaping from the abyss.

Scenario 2: Breaks in momentum

If ETH plunges below $3,050 once more, the recovery trend shall weaken, though the macro setup remains delayed, not destroyed. The bulls must retest $2,900 to rebuild their structure from lower realms, a task as daunting as climbing a mountain of ice.

Though the upward trajectory of ETH has not ceased, despite its messy performance, the market hath not collapsed, despite the harsh fakeout. The rally may yet continue, if the buyers hold the line-a test of faith, as ever, in the capricious mistress of finance. 🐍📈

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2025-12-11 18:15