As Ethereum falls below $2,400 and trades under a 200-day EMA, technical analysis warns that the potential revision will be $2,200.
Ethereum is currently trading at $2,400 as Bitcoin has returned below $103,000. As wider market corrections gain momentum, Ethereum faces the risk of a deeper decline towards the $2,200 level.
Ethereum price analysis
On the daily chart, Ethereum price action shows bullish breakouts from falling channel patterns and completes round bottom formations. The neckline of this bullish pattern coincides with a 50% Fibonacci retracement level of nearly $2,700.
However, it didn’t break into the top of the neckline, causing a pullback towards a Fibonacci retracement level of 38.20%, close to $2,400. Intray’s decline was 3.74%, and Ethereum is currently trading at $2,403 over its 200-day EMA.
After rebounding from the $2,349 24-hour low, Ethereum is struggling to surpass key Fibonacci support. The short-term pullback also shows a potential bearish crossover between the MACD line and the signal line. If confirmed, this negative crossover could show a deeper correction and potentially disable bullish patterns.
Meanwhile, immediate support below the Fibonacci level of 38.20% is currently at the 100-day EMA, followed by $2,193 in psychological support at around $2,000.
On the bullish side, if the broader market stabilizes based on a round-bottom breakout pattern, Ethereum could gather towards the $4,000 mark.
Analysts Increase Ethereum Whale Support
According to a recent tweet by Crypto analyst Ted Pillows, Eth Whale Holdings has seen a significant increase in the past few weeks. Analysts cited data from Cryptoquant to highlight the balance held by addresses between 10,000 and 100,000 ETH has risen to 1679 million ETH.
The increase represents a $1.25 billion spike in whale holdings over the past month. This underscores the growing confidence among large investors in Ethereum’s long-term potential.
Specifically, the pillow emphasized that the development was a bullish signal, saying “my bag is ready.”
Ethereum whales and price charts by Cryptoquant
