Ethereum Faces Risk of Falling to $1,200 as Bull Trap Warning Emerges

Ethereum’s native token, Ether (ETH), could drop to $1,200 in the coming weeks, following a fractal setup identified by analyst Leshka.eth. The warning stems from a Supertrend pattern on the daily chart, where previous bullish flips in October 2025 and January 2026 failed and preceded 45% and 48% declines. Currently, ETH is showing a similar setup around $1,990, with the next downside target at $1,200 if support breaks.

Macro Risks and Whale Distribution Pressure ETH

The bearish outlook is compounded by macroeconomic risks, including tensions from the US–Israel and Iran conflict, recession fears, and the Fed delaying rate cuts until at least December 2027. ETH has lost over 17% from its March high, while US spot Ether ETFs saw roughly $300 million in net outflows.

Weak Accumulation Among Major Wallets

Data from Glassnode indicates limited accumulation by major ETH holders. Mega-whale wallets with over 10,000 ETH have plateaued since late 2025, and mid-sized wallets holding 1,000–10,000 ETH show little renewed buying. Smaller holders, or “shark” addresses with 100–1,000 ETH, also remain below last year’s peaks, suggesting broad-based demand is low.

The combination of repeated bull trap setups, weakening macro conditions, and muted whale accumulation highlights the risk of further downside for Ethereum in the near term.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.