Ethereum price is set to close the week in the green, although a bull trap looms

Ethereum (ETH) price has been trading quite strong in a very nervous week where traders were thrown left and right, being up one day in the European session and the next day losing everything at the end of the US closing bell. Bulls could still eke out solid gains for the week, with a lot of cash being burned in the process. However, a slight fade pushed price action below the important price cap, which could be enough to trigger a bull trap and see price action collapse next week.

ETH price set to collapse next week

Ethereum price still has some hours to go if it wants to add more gains before this week finally closes its doors. With the gains, that is as far as the good news goes as another big issue is at hand. That issue is the bull trap looming as bulls cannot eke out that weekly gain above the 55-day Simple Moving Average (SMA) at $1,600.

ETH price is thus at risk of being run down into the ground on the back of that bull trap. If the bull trap falls in line with a negative trading week in overall markets next week, added with more dollar strength, expect the floor at $1,404 not to hold and break down. Plenty of free room opens up until the first support becomes available at $1,011, the low of July. 

ETH/USD Weekly chart

Although that bull trap could be there, it can easily be dismantled should global markets positively start the new trading week. Look for equities storming out of the gates with multiple gains across the board and in several trading sessions from Asia to the US. Bulls would quickly jump above that $1,600 level and eke out further gains by Friday towards roughly $1,928 and be back at the high of August.